Student loan debt has become one of the most persistent financial burdens Americans face today. Some argue that it should be erased. Others insist borrowers are solely to blame. But neither position reflects the reality of the situation.
The truth is simpler and more troubling. The student loan system has expanded beyond its original purpose and now places long-term financial strain on millions of Americans. What began as a tool to increase access to higher education has devolved into a structure allowing costs to rise without meaningful restraint, while shifting nearly all risk onto students.
This isn’t an argument for automatic forgiveness, nor is it an attempt to absolve individuals of responsibility. Any honest discussion surrounding this topic must begin with the data, the incentives that shaped the system, and the real impact on borrowers’ lives.
As of 2024, Americans owe more than $1.6 trillion in student loan debt. Roughly 43 million people hold student loans, with the average borrower owing about $39,000. Nearly 59% of college graduates in 2023 used student loans to earn their degree. Since 2020, total student loan debt increased by more than $60 billion.
These figures point to a structural problem, not a collection of bad personal decisions. Yet acknowledging a crisis doesn’t mean endorsing blanket loan forgiveness. Debt doesn’t disappear without consequences, and large-scale forgiveness shifts costs onto taxpayers who often didn’t attend college or already paid their own loans. That approach fails to effectively address the brokenness of a system that created the problem in the first place.
The deeper issue is that millions of young Americans were sold a promise that no longer reflects reality. For decades, students were told that an undergraduate degree was the safest path to stability. Colleges reinforced this message, parents trusted it, and lenders made borrowing easy. The result was predictable. Enrollment rose, borrowing increased, and tuition climbed rapidly.
While the cost of attending college soared, the value of an undergraduate degree steadily declined. As more degrees entered the market, they lost their ability to differentiate candidates. Many graduates now find themselves competing for jobs that don’t require a degree at all, while carrying debt sized for an economy that no longer exists. Wage growth is unable to keep up with the rising cost of tuition, leaving borrowers stuck with payments that strain their finances for decades.
Surveys show that student debt affects more than monthly budgets. Borrowers are more likely to delay buying a home, starting a family, or starting a business. These delays have long-term consequences for wealth building and economic mobility. Student debt shapes life choices in ways that are difficult to reverse once they take hold.
There are also serious health implications. Harvard Law School has linked student loan debt to higher stress levels, anxiety, and negative mental health outcomes. Debt creates persistent pressure, especially for borrowers whose income doesn’t align with their loan balances. When financial strain becomes severe, it affects productivity, decision-making, and overall well-being.
None of this absolves individuals of responsibility for managing their own finances. Borrowers who want to escape student loan debt need clear, practical strategies.
For example, paying only the minimum payment on loans is one of the biggest obstacles to progress. Minimum payments often barely reduce the principal balance and sometimes don’t fully cover interest. Borrowers who consistently pay more than the minimum shorten repayment timelines and reduce total interest paid.
A written budget is another essential tool. Without a clear plan, money disappears into convenience spending that feels harmless in isolation but adds up quickly. Cutting back on non-essential expenses can feel restrictive, but it doesn’t need to be permanent. Temporary sacrifice creates long-term relief.
Increasing income also plays a critical role. Large debt balances cannot be erased through budgeting alone. Side work, overtime, certifications, or career changes can accelerate repayment significantly. These steps may be uncomfortable, but they offer a path forward that waiting for policy changes does not.
Organizations like Ramsey Solutions emphasize these principles for a reason. Personal action remains the most reliable way out of debt, regardless of what happens in Washington. Borrowers who rely on potential forgiveness programs often lose valuable time that could’ve been spent reducing balances.
Still, personal discipline just can’t fix a broken system. Federal lending policies removed incentives for colleges to control costs. Schools raised tuition because funding was available, not because outcomes improved. Students borrowed because access was easy and warnings were minimal.
Real reform requires accountability. Colleges should share financial risk when graduates struggle to repay loans. Pricing should be transparent, outcomes should be reported clearly, and students should understand the return on investment before borrowing. Loans should be treated as a serious financial decision, not a default step into adulthood.
The student loan crisis didn’t appear overnight, and it won’t disappear through denial or slogans. Borrowers deserve honesty, not false promises, and future students deserve a system that doesn’t trap them before their careers even begin.
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This article was made possible by The Fred & Rheta Skelton Center for Cultural Renewal.
Image credit: Unsplash
