Student loan debt has become a hot-button issue, and for good reason. It has been steadily increasing over the years, with the latest statistics revealing that the total amount of student loan debt in America is a staggering $1.6 trillion. It is an issue that affects millions of people across the country, and the shocking truth behind its rise is something that needs to be understood.

The rising cost of tuition

One of the primary factors behind the exploding student loan debt is the cost of tuition. In the past few decades, the cost of tuition has steadily risen, and in some cases has even doubled. This has led to students borrowing more and more money to pay for their education, leading to skyrocketing levels of debt.

The impact of for-profit colleges

Another major factor behind the rise of student loan debt is the impact of for-profit colleges. These institutions are notorious for their high tuition costs and lack of quality education. They often target individuals from low-income backgrounds or those who are vulnerable, such as military veterans. These students often borrow exorbitant amounts of money to attend these institutions, and as a result, they are burdened with a significant amount of debt.

Lack of financial literacy

Many students also lack financial literacy and do not fully understand the long-term implications of taking out loans. This can lead to poor decision-making when it comes to borrowing money for their education. They may not realize that the amount they are borrowing will take them years or even decades to pay off, and that the interest rates can significantly increase the amount they need to repay.

The absence of bankruptcy protection

Unlike other types of debt, student loans cannot be discharged through bankruptcy. This means that students are often stuck with their debt, regardless of their financial circumstances. Even if they are struggling to make payments, they cannot simply declare bankruptcy and be done with it. This has left many students feeling trapped, and unable to move on with their lives.

The lack of governmental support

The government has also played a role in the rise of student loan debt. Over the years, funding for public universities has decreased, leading to higher tuition costs. Additionally, the government has not done enough to regulate for-profit colleges, which has allowed them to continue charging exorbitant tuition rates without offering a quality education.

In conclusion, the rise of student loan debt in America is a multifaceted issue that requires a comprehensive solution. It is clear that the cost of tuition, the impact of for-profit colleges, the lack of financial literacy, the absence of bankruptcy protection, and the lack of governmental support have all contributed to this problem. With the right policies and reforms, we can make higher education more affordable and accessible to all without burdening students with unsustainable debt.