American students owe 1.5 trillion in student debt. As the numbers it costs to get a college education continue to rise, students feel the pressure to compromise their educations. The issue of the student debt crisis is one that can be turned around. Systems in other countries, where students can leave their education with minimal debt can serve as models for solutions that we can adapt in the U.S. Creating a new system by implementing new rules that have been shown to be effective is necessary for fixing the student loan crisis.
A student in Australia borrows roughly the same amount of money that a student in the U.S. would to pay for college. Although, the differences between the U.S. system of debt payment and the Australian system differ greatly. In the U.S. student loan payments begin right after graduation although in Australia, payments don’t begin until the borrowers salary reaches a threshold of 40,000 Australian dollars(about $28,300). Another difference between the two systems is that in Australia payments fluctuate based on pay increases and decreases, whereas in America student debt payments are consistent. These leniencies in the Australian system of student debt make paying for college a more realistic choice for students.
In order to fix the student debt crisis we must implement new rules into our current system to prevent universities, especially for-profit universities, from misusing government subsidies. An article by Forbes magazine included the quote “For-profits make up only 12% of enrollment in the higher education sector, but they take 25% of all federal aid and represent half of all student defaults.” The same article proposes not giving private universities grants at all or eliminating student loans from these institutions.
The student loan crisis is an issue that can be solved in time with the right implementation of new systems and rules. Other countries can be used as an example for the direction that our student loan system should take, and light needs to be shed on universities that are taking advantage of money for financial aid. With these things in mind the student loan crisis can be greatly lessened with time.
Leonhardt, Megan. “This Map Shows the States Where the Student Loan Crisis Hits the
Hardest.” CNBC, CNBC, 1 Aug. 2018,
Dynarski, Susan. “America Can Fix Its Student Loan Crisis. Just Ask Australia.” The New York
Times, The New York Times, 9 July 2016,
Dvorkin, Howard. “The Solution To The Student Loan Crisis? Implement New Rules.” Forbes,
Forbes Magazine, 30 Oct. 2017, www.forbes.com/sites/forbesfinancecouncil/2017/10/19/the-solution-to-the-student-loan-crisis-implement-new-rules/#78d6eae44eca .
“Currency Calculator Converter Australian Dollar to US Dollar.” Currency Calculator (Australian Dollar, US Dollar) – X-Rates, www.x-rates.com/calculator/?from=AUD&to=USD&amount=40,000.