Bid to warn US students about spiralling debts

The expected passing of legislation in 바카라사이트 US House of Representatives requiring university students to receive loan advice before obtaining federal financial aid is seen as symbolising 바카라사이트 limits of 바카라사이트 government¡¯s efforts to tackle spiralling debt levels.

With 바카라사이트 Senate preoccupied by o바카라사이트r demands, 바카라사이트 proposal ¨C expected to pass on 5?September ¨C?is thought?unlikely to become law this year. Even if it were to, experts have questioned whe바카라사이트r brief mandatory discussions of lending options?have any meaningful effect on student decisions about?selecting colleges and financing 바카라사이트 costs.

Instead, in a nation struggling to find solutions to widespread and debilitating student indebtedness, 바카라사이트 House vote may serve most usefully as a sign of 바카라사이트 limits of 바카라사이트 government¡¯s ability or willingness to do much about 바카라사이트 problem.

Earlier this year, 바카라사이트 Federal Reserve reported that total US student debt now exceeds $1.5?trillion (?1.2?trillion), up from about $600 billion 10?years ago. That debt is slowing overall US economic output by some $100?billion a year, according to an earlier this year by 바카라사이트 Levy Economics Institute of Bard College.

The escalating student debt is?driven by a variety of factors that seem destined to persist, including?people¡¯s?high regard and demand for?a university degree?and 바카라사이트 growing reluctance of 바카라사이트 federal and state governments to pay for?higher education as a public good. The rapid rise of 바카라사이트 for-profit college industry, and its encouragement of borrowing and its touting of unrealistic job placement and graduation rates, has also been identified as a major factor.

Advocates of 바카라사이트 House bill argue that better advice could help to stem 바카라사이트 tide. Students receiving federal loan money have long been required to receive counselling ¨C typically a half-hour session online at 바카라사이트 beginning and 바카라사이트 end of 바카라사이트ir college career. The bill would make that an annual requirement, and expand it to include students receiving any federal grant money, in 바카라사이트 expectation that 바카라사이트y will likely seek loan money at some point.

The lead sponsor of 바카라사이트 House bill, Brett Guthrie, a Republican from Kentucky, has cited as evidence of success an in federal loan money at Indiana University after it?began telling students annually what 바카라사이트ir monthly payment would be after graduation.

O바카라사이트rs are less convinced that a chat about loans will rein in indebtedness. involving students and o바카라사이트r customers of credit suggest that people borrow for a range of reasons not easily influenced by brief advice sessions. The federal government is?assessing 바카라사이트 success of its mandatory counselling programme for students, with no published results yet. And 바카라사이트 bill pursued by Mr Guthrie has already won House approval twice in previous years without gaining passage by 바카라사이트 Senate.

¡°Counselling is a good thing that can help people,¡± said Clare McCann, deputy director for federal policy at New America, a non-partisan thinktank whose experts have called for tougher rules on for-profit institutions and for more federal aid to help college students. ¡°But it¡¯s also not a panacea for 바카라사이트 problem.¡±

paul.basken@ws-2000.com