How Federal Policymakers Should Address the Student Debt Crisis

The number of 18 to 24-year-olds enrolled in college increases each year as greater emphasis continues to be placed on higher education. To pay for college, many students take out loans. In 2012, two-thirds of the seniors graduating with a bachelor’s degree from a public, four-year institution had taken out loans – up from the 62% with loans in 2008 and the 46% in 1993. Americans seem to take it for granted that college students can and should use loans to pay at least some of the costs of higher education – and loans do seem to work for students who borrow a reasonable amount, complete their degree programs, and obtain the high-paying jobs. This report suggests how federal policymakers should address the student debt crisis.