Unemployment for recent college graduates topped 9 percent last year. In addition to this anemic job market, young degree-holders are often burdened by debt. The average debt for a graduate from the class of 2010 was $25,250.
In this context, we welcome President Obama's recent efforts to ease the pain of student debt. Obama's plan has two main components. First, federal student loan payments will be capped at 10 percent of income, down from 15 percent, and debt will be forgiven after 20 years, down from 25 years. Second, graduates who have both student loans from the government as well as private government-backed loans will be able to consolidate them at a reduced interest rate.
Any assistance to struggling college graduates is appreciated during this economic downturn. But it is questionable just how much of an impact these changes will have. There are numerous qualifications to be eligible for aid. Graduates of the class of 2011 and earlier, for example, cannot take advantage of the 10 percent cap. And Daniel Indiviglio of the Atlantic suggested that the average monthly savings resulting from Obama's measures "will be between $4 and $8." For students drowning in debt, this moderate relief can only go so far. Leaving aside the new policies, it is clear that student loan debt is a very real problem and one our elected leaders should be addressing.
Of course, a fundamental issue in higher education affordability, and one very much related to relieving student debt, is tuition. President Obama's announcement of the debt-relief measures coincided with the release of a College Board report showing that tuition continues to increase at a staggering rate. The cost of attending a public university increased 8 percent, and private schools saw a 4.5 percent rise. The Corporation approved a 3.5 percent hike in Brown tuition earlier this year.
For years, it has gotten more and more difficult to afford a college education. Debt-relief efforts alone will not solve this problem. Tuition should be a central issue for the Occupy movement on college campuses across the country. We must demand an explanation for why tuition continues to outpace inflation and growth year after year. Are we receiving a better product than previous classes to pass through the Van Wickle Gates? Because we are certainly paying more.
If our political leaders are serious about reviving our country's economic engine, they will take on the issue of college affordability. Exorbitant tuition not only hampers the recovery by stretching our finances — it threatens to rob countless young people of the opportunities a college education affords. As high-paying employment becomes ever more contingent on holding a degree, college affordability is an urgent problem. This trend is particularly distressing in public universities, institutions instrumental in providing affordable college education for individuals of all socioeconomic backgrounds. We cannot allow public institutions to turn their backs on lower-income students.
Public opinion research indicates that young people of all political stripes want action on the cost of college. We should use next year's election as an opportunity to organize and demand action.
Editorials are written by The Herald's editorial page board. Send comments to editorials@browndailyherald.com.
