The Student Loan System Crisis

The current student loan system has transitioned from a supportive initiative for low and middle-income students to a complex issue that burdens borrowers with long-term debt. Factors contributing to this situation include reduced state and federal funding for colleges and the influence of for-profit educational institutions that prioritize profit over student outcomes. Journalist Jillian Berman highlights that colleges have little incentive to manage loan repayments, as funds are received upfront with no accountability for graduates' financial success. Solutions proposed involve major reforms by Congress, including state-level initiatives to make public college more affordable or free, to create a more sustainable approach to student financing.