Street roots
13
Nov. 7, 2014
Student debt a social problem demanding federal action
BY M . NELS JOHNSON
workforce by reducing their wages by at
least 10 percent in perpetuity through their
lection Day has sadly become a
student loan debt obligations. According to
reminder to us all that we are a
the Institute for College Access & Success,
deeply divided country that doesn’t
graduates of public universities in Oregon
agree on much. We differ on Democrats vs.
have
onaverage more than $25,000 in debt
Republicans, trickle-down economics vs; a
acquired from a bachelor’s degree, while
more redistributive approach, a moré active
graduates from private universities in
and aggressive foreign policy vs. a more
Oregon on average have a slightly higher
reserved and isolationist, rich vs. poor,
debt total for the same bachelor’s degree.
SuperPACs vs. the people, etc., etc. But
A recent report in The Oregonian showed
beyond our differences, one thing unites us
that the total amount of student debt in
as Americans: our persistent belief in the
Oregon has doubled in the last decade. All.
power and opportunity found in education.
this, while wages for 90 percent of
For generations now, Democrats,
Americans has stagnated for a generation.
Republicans, African Americans, Asian
We have now made students pay premium
Americans, rich, poor, rural, urban and
to join the middle class and earn less money
Americans from every walk of life have
than their parents did. Even under
instilled in their children the importance of
President Obama’s plan for student loan
working hard in school and getting a good
relief, students must still pay at least 15
education. In fact, education and hard work
percent of their income toward their
are the dual engines of the American
student loans. USA Today reports that this
Dream, giving one the power needed to
15 percent (or more) being paid to student
propel up the economic ladder and into the
loan lenders is already u drag on the
middle class.
economy. As a result of being thousands of
The problem, according to the Economic
dollars in debt, tnore and more young
Policy Institute, is that a bachelor’s degree
professionals are putting off things like
is not enough any more for many jobs that
provide an entry point into the middle class. homeownership, marriage and starting a
family. Without some sort erf structural
Middle class jobs used to only require a
reform student loan debt is likely to be a
bachelor’s degree, now many require a
drag on the economy for a generation.
master’s degree. Additionally, the cost of
But even though student debt is largely a
obtaining a bachelor’s degree has increased
federal issue, there are still plenty of things
more than 1,112 percent over the last 30
years, according to a study commissioned by the Oregon Legislature can do to not only
Bloomberg News. The study finds that
ease the burden on those students with
college costs have increased “four times
huge debt, but also to bring down the cost
faster than the increase in the consumer
curve of higher education. A good place for
price index.”
the Legislature to start would be tax policy.
And though the benefits of going to
Currently, those with student debt can
college still Outweigh the cost, we are
receive a federal tax deduction for the
ushering a new generation into the
interest they pay on their student loan
C O N T R IB U T IN G C O L U M N IS T
E
M, Neb Johnson
M. Nels Johnson is
an elected director
serving on the board
o f the M ultnom ah
Education Service
District, adjunct
professor a t Warner
Pacific College an d is
an attorney in private
practice. H e an d his
wife live in Northeast
Portland.
payments. The federal deduction is not
perfect, it only allows you to deduct up to
$2,500 and the deductiongoes away if you
make more than $75,000, Oregon ought to
go farther and allow state income tax
deductions for all student loan payments.
This won’t solve the problem of students
loans outright, but it will provide some
financial relief for those forced to pay an
outsized amount of their monthly income
repaying student loans.
A second thing the legislature should do
is create a 9/11-style commission (not to
overly dramatize the issue) to investigate:
what went wrong with the cost of higher
education; how did we get to a place where
higher education requires a mortgage-sized
loan and, most importantly; what can'be
done to solve the problem. But then
lawmakers must show courage and enact
whatever sort of reforms the commission
recommends, no matter how painful they
might seem.
Ultimately, like immigration reform,
student debt is a federal issue. But'just like
the fight for immigration reform, Congress
doesn’t seem interested or capable of
solving the problem. People with student
debt can’t wait any longer oh the federal
government If we want to solve the student
debt problem for Oregon students we should
get started and hope the federal
government follows our lead. Restoring the
American Dream starts with restoring the
pathway to prosperity for generations to
come. It’s still true that the surest path to
prosperity still runs through a good
education. May we have the vision and
courage to make sure all students still have
access to that path; let’s fix the student loan
problem before it’s too late.
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