Forty million Americans owe student loan debt which collectively amounts to $1.6 Trillion from both federal and private loans - and expected to rise to over $2.2 Trillion by 2022. One in five of those forty million are in default. For the Class of 2016, the average student debt was over $37,000.
In the 1990s, urged by the U.S. Department of Education, states began adopting laws requiring regulatory boards to suspend professional licenses, and even driver’s licenses. Around 2010, roughly half of states had some form of license suspension for default (LSD) law in place - doctors, social workers, teachers, pharmacists, nurses, lawyers and other professionals have found themselves susceptible to loss of their licenses due to these punitive laws.
From 2015-17, four states have ended LSD laws. During 2017-18 sessions, seven states removed LSD laws. Texas in this legislature just ending removed itself from that list and passed a bill co-sponsored by thirty legislators, which Gov Abbott on signing said:
Two very different bills have been introduced in the Senate. Senators Rubio and Warren have reintroduced their bill - Protecting Job Opportunities for Borrowers Act again this session that would prevent loss of borrowers jobs, which would go into effect two years after passage. It has never gone to Committee.
The head of that Committee (Heath, Education, Labor and Pension) Sen Alexander has introduced a bill that would mandate deducts from paychecks by employers on ten year repayment plans. Average student debt by recent graduates is almost $30,000 with some private loans varying up to 14% interest rates. Financial advisers recommend a maximum of 8% of income go to paying off student loans. Federal loan interest rates are 4.5%. As some state's pension plans have fallen to dangerously low levels, professionals like teachers who may also may not have had raises for years have that increased pressure of seeing pension plan changes.
Applications for federal loan forgiveness is through the Education Dept, which under the Trump administration includes those who previously worked for private school systems. Those forgiveness rates are low and slow in being processed. Recently, only 9,000 of 42,000 eligible veteran with outstanding student loan debt have had their loans forgiven. That has occasioned fifty-one states and territories AGs to send a letter to Betsy DeVos, Education Secretary, to act on these applications. Loan forgiveness rates for others are much lower. Unlike other consumer debt such as credit card and mortgage debt, however, student loans traditionally cannot be discharged in bankruptcy. In 1998, Congress removed dischargeablility in bankruptcy except if a debtor could show that paying back the student loans would create an undue hardship. In 2005, Congress extended this protection to private student loans.
According to the Consumer Financial Protection Bureau (CPFB), the number of student loan borrowers 60 and older rose at least 20% nationwide between 2012 and 2017. In more than 75% of states, outstanding student loan debt increased by 50% or more. Student loan debt is a major reason many at retirement age have to continue working, while many graduating students may have to move back home with those parents, and may prevent those graduates have to stay with certain jobs, delay having children or buying a home. For those of us with three or four children, it takes careful, long-range planning to ensure that each have a good education that does not put them in debt. Education costs will rise much more by the time they are ready for college. By 2022, Notre Dame tuition and fees - currently at over $55,000 - only for a four year degree will total $225, 530 if it continues to grow at the 3.7% per year as it has for the last five years. Total cost of attendance now at ND is over $74,000 per year. A child currently a high school freshman could pay over $320,000 for a four year degree at ND.
In the 1990s, urged by the U.S. Department of Education, states began adopting laws requiring regulatory boards to suspend professional licenses, and even driver’s licenses. Around 2010, roughly half of states had some form of license suspension for default (LSD) law in place - doctors, social workers, teachers, pharmacists, nurses, lawyers and other professionals have found themselves susceptible to loss of their licenses due to these punitive laws.
From 2015-17, four states have ended LSD laws. During 2017-18 sessions, seven states removed LSD laws. Texas in this legislature just ending removed itself from that list and passed a bill co-sponsored by thirty legislators, which Gov Abbott on signing said:
Twelve states remain with LSD laws in place.
Two very different bills have been introduced in the Senate. Senators Rubio and Warren have reintroduced their bill - Protecting Job Opportunities for Borrowers Act again this session that would prevent loss of borrowers jobs, which would go into effect two years after passage. It has never gone to Committee.
The head of that Committee (Heath, Education, Labor and Pension) Sen Alexander has introduced a bill that would mandate deducts from paychecks by employers on ten year repayment plans. Average student debt by recent graduates is almost $30,000 with some private loans varying up to 14% interest rates. Financial advisers recommend a maximum of 8% of income go to paying off student loans. Federal loan interest rates are 4.5%. As some state's pension plans have fallen to dangerously low levels, professionals like teachers who may also may not have had raises for years have that increased pressure of seeing pension plan changes.
Applications for federal loan forgiveness is through the Education Dept, which under the Trump administration includes those who previously worked for private school systems. Those forgiveness rates are low and slow in being processed. Recently, only 9,000 of 42,000 eligible veteran with outstanding student loan debt have had their loans forgiven. That has occasioned fifty-one states and territories AGs to send a letter to Betsy DeVos, Education Secretary, to act on these applications. Loan forgiveness rates for others are much lower. Unlike other consumer debt such as credit card and mortgage debt, however, student loans traditionally cannot be discharged in bankruptcy. In 1998, Congress removed dischargeablility in bankruptcy except if a debtor could show that paying back the student loans would create an undue hardship. In 2005, Congress extended this protection to private student loans.
According to the Consumer Financial Protection Bureau (CPFB), the number of student loan borrowers 60 and older rose at least 20% nationwide between 2012 and 2017. In more than 75% of states, outstanding student loan debt increased by 50% or more. Student loan debt is a major reason many at retirement age have to continue working, while many graduating students may have to move back home with those parents, and may prevent those graduates have to stay with certain jobs, delay having children or buying a home. For those of us with three or four children, it takes careful, long-range planning to ensure that each have a good education that does not put them in debt. Education costs will rise much more by the time they are ready for college. By 2022, Notre Dame tuition and fees - currently at over $55,000 - only for a four year degree will total $225, 530 if it continues to grow at the 3.7% per year as it has for the last five years. Total cost of attendance now at ND is over $74,000 per year. A child currently a high school freshman could pay over $320,000 for a four year degree at ND.
Last edited:
