The student loans debt crisis, explained

Summary

Jessica, the first in her family to graduate college, faces mounting student debt and struggles to find a well-paying job, despite holding a biology degree. After working multiple low-wage jobs, she considers going back to school for a pharmacy degree, though it means incurring more debt. Jessica’s story mirrors the challenges faced by millions of Americans burdened with student loans, affecting their financial stability and delaying key life milestones. This crisis has wider societal implications, including fewer taxpayers contributing to Social Security, which could worsen the retirement crisis in the future.

Takeaways

• 😀 Jessica graduated with a biology degree from Loyola University Chicago, becoming the first college graduate in her family.
• 😀 Despite having a STEM degree, Jessica struggled to find a well-paying job after graduation.
• 😀 Jessica's student loan debt totaled $100,000, a significant burden even with a degree in a high-demand field.
• 😀 Six months after graduation, Jessica began receiving pressure from lenders demanding loan repayment.
• 😀 To make ends meet, Jessica took multiple low-wage jobs, including working as a lab technician, customer service representative, and in a veterinarian’s office.
• 😀 Three years after graduating, Jessica is considering going back to school to become a pharmacist, but this would require taking on even more student loans.
• 😀 Many graduates like Jessica are stuck in jobs they could have gotten without a degree, earning wages that make it difficult to repay their loans.
• 😀 More than 44 million Americans collectively owe $1.4 trillion in student loan debt, contributing to a nationwide financial crisis.
• 😀 Student loan debt impacts borrowers’ disposable income, delaying major life milestones like buying a home, starting a family, and saving for retirement.
• 😀 The widespread student debt crisis may lead to fewer taxpayers contributing to Social Security, creating potential long-term economic issues for future generations.

Q & A

Why did Jessica choose to attend Community College first?

Jessica chose to attend Community College first to save money on her education before transferring to a four-year university.

How much student debt did Jessica accumulate by the time she graduated?

Jessica accumulated $100,000 in student debt by the time she graduated with a biology degree from Loyola University of Chicago.

What challenges did Jessica face after graduating with a biology degree?

Despite having a STEM degree, Jessica struggled to find a good job and, six months after graduating, was unable to secure a position that paid well enough to handle her student debt.

What jobs did Jessica take up after struggling to find a well-paying job in her field?

Jessica worked as a lab technician, customer service representative, and in a veterinarian's office to make ends meet.

Why is Jessica considering going back to school?

Jessica is considering going back to school to become a pharmacist because she is unable to find a job with her biology degree that pays above minimum wage.

What is the catch with Jessica returning to school for further education?

The catch is that Jessica would need to take out more student loans in order to afford the costs of going back to school, adding to her existing debt.

What larger issue does Jessica's situation highlight?

Jessica's situation highlights the struggles faced by many students who graduate with debt but are unable to secure well-paying jobs, making it difficult to repay their loans.

How many Americans are currently dealing with student loan debt?

More than 44 million Americans owe a total of $1.4 trillion in outstanding student loans.

What are the economic consequences of widespread student loan debt?

The economic consequences include less disposable income for borrowers, and delays in important life milestones like moving out, owning a home, or starting a family. This could lead to fewer taxpayers and a potential retirement crisis in the future.

How does student loan debt affect borrowers' ability to achieve life milestones?

Student loan debt can delay life milestones for borrowers, such as moving out, buying a home, or starting a family, as they struggle to manage debt payments alongside other expenses.