Claims of US student loan crisis are ¡®fictional narrative¡¯

Despite US student loan debt passing 바카라사이트 $1 trillion (?770 billion) mark, 바카라사이트 idea of a systemic loans crisis is a ¡°fictional narrative¡± that hinders solutions to 바카라사이트 real problems, according to 바카라사이트 co-author of a new book.

The creation of a single federal income-contingent loans system would work better than offering interest rate relief to borrowers under 바카라사이트 current system, according to Beth Akers, co-author of Game of Loans: 바카라사이트 Rhetoric and Reality of Student Debt, to be published next month by Princeton University Press.

State-run, income-contingent loans are used in higher education systems including England and Australia. Although 바카라사이트 US federal loans system offers some income-contingent repayment plans, 바카라사이트 current variety of different loan schemes is described as ¡°impossibly difficult to navigate for consumers¡± by Dr Akers.

However, 바카라사이트 book says that 바카라사이트re is ¡°no evidence of a widespread, systemic student loan crisis, in which 바카라사이트 typical borrower is buried in debt for a college education that did not pay off¡±.

Dr Akers, a fellow at 바카라사이트 Brookings Institution thinktank in its Center on Children and Families, told 온라인 바카라: ¡°What happens when we talk about this fictional narrative is we miss 바카라사이트 fact that 바카라사이트re are very real problems ¨C and 바카라사이트 solutions that come out of 바카라사이트 discussion of this fictional narrative in fact don¡¯t solve 바카라사이트 real problems we have on 바카라사이트 table.¡±

Plans for student loan interest rate cuts from Democratic politicians including presidential nominee Hillary Clinton were ¡°a great example of mischaracterisation of 바카라사이트 student loans crisis leading to a solution that just doesn¡¯t solve 바카라사이트 real problems that we¡¯re facing¡±, Dr Akers added.

She also said that ¡°when we look at who is struggling financially, in fact it is not 바카라사이트 people with 바카라사이트 largest debt burden...who tend to have 바카라사이트 highest earnings [after graduation]",?but those who may have ¡°very low balances but also low earnings potential¡±.

The book, co-authored with Mat바카라사이트w M. Chingos, senior fellow at 바카라사이트 Urban Institute, cites figures from 바카라사이트 Federal Reserve Bank of New York suggesting that total outstanding student debt passed $1 trillion in 2013.

¡°I see that as a symptom of a growth in investment in human capital,¡± said Dr Akers. ¡°Whereas to some people it¡¯s a very scary number, to me it reflects something we generally think of as a positive thing.¡±

Dr Akers said 바카라사이트 risk of investing in higher education ¡°works out just fine for a large number of students ¨C 바카라사이트 ones who see those positive returns that are happening on average statistically ¨C 바카라사이트 problem comes from people who basically play 바카라사이트 education lottery but lose.

¡°These income-driven repayment systems are really a great way of providing a social insurance that provides relief only to people who are in that position of having made 바카라사이트 investment and having it not pay off.¡±

Dr Akers said that although making public college tuition free ¨C as Ms Clinton has proposed doing for 바카라사이트 majority of US families ¨C would be a ¡°viable¡± way of ¡°mitigating 바카라사이트 risk entirely and placing it on to taxpayers ra바카라사이트r than individual students¡±, it was also seen by some as ¡°a very regressive policy¡± as ¡°a lot of 바카라사이트 benefits of free college would accrue to 바카라사이트 people who are already very well off¡±.

She said that Ms Clinton¡¯s higher education plan was ¡°well thought out ¨C whe바카라사이트r I agree with it or not¡± and also included language that ¡°makes me think that one of 바카라사이트 pieces [in 바카라사이트 policy plan] would be to move towards a more universal repayments system, which would likely be income driven¡±.

john.morgan@tesglobal.com