Student debt has become a significant issue in the United States, making it harder for working-class citizens to get a higher education. Studies show that 74 percent of all millennials are stressed or uncertain about their financial situation. The primary reason this is a problem is the increasing cost of college education in the United States.
In 1963, four years of college cost about $1,286. Adjusting for inflation, that is about $11,572.60 in today’s dollars. However, in 2021, it cost an average of 29,033. This difference means college prices have almost tripled in the last 60 years. The cost of living has also increased, causing people to fall even further into debt.
Surprisingly minimum wage has not kept up with inflation. In 1963 the minimum wage was $1.25 an hour, but if adjusted for inflation then that equals $12.62 in today’s dollars. Currently, the minimum wage is only $7.25. This makes it harder for a college student to make enough money to pay for college leading to the need to borrow.
Some may say that people who go to college will make that money back with a better-paying job. However, this is not necessarily true as just because a person has a college education does not guarantee a job, and even if they get a job, there is no guarantee that it will pay enough to allow them to pay off their student loans.
The question of how this problem of student debt can be solved remains. One method is student loan forgiveness by the government. This method is being actively used by the U.S. and has been one of the Biden administration’s primary focuses.
More drastic measures are needed to solve the root issue of the price of college. The government needs to take a more direct approach and subsidize the colleges directly. This subsidization will allow for more affordable prices for the average consumer while preserving the quality of education. This approach to education is used in several countries, and the results are impressive. The cost of college in Germany is nearly free, with only a few minor fees necessary. This shows how if the government values education, it can become free for all.
So, where should this money come from? The U.S. government spent $736 Billion on defense this year alone but only $85.3 billion on education. Instead of spending all the money on defense, the government should invest in better education for all.
