Education advocates say a college education is important because the gap in income is widening between those with a college degree and those without one. Over a lifetime, a college graduate can now expect to earn 75% more than a person without a degree. The availability of federal aid determines whether many students can attend schools of higher education. The average in-state undergraduate costs for tuition and fees at most public universities is about $11,000, while costs at private colleges average about $37,000 – not counting room and board. Between 2008 and 2018, the average tuition at four-year public colleges increased by 37%. Low-income students continue to fall behind in their ability to access a college education. About 72% of all college undergrads now need some form of financial aid. The Department of Education distributes Pell Grants - which do not require repayment, and manages the Stafford loan program. In 2020, the maximum Pell Grant award was $6,345, while the typical Stafford Loan is about $10,000. There are nearly 45 million Americans trying to pay off student loans, and total student loan debt is now $1.64 trillion. Many of these loans carry high interest rates set by the financial institutions which administered the student loan program. Servicing this debt is difficult for grads with lower-paying public service careers, those who are ill or unemployed, or those who failed to complete their degree. The typical amount of a student’s debt is now about $33,000. Advocates say many young Americans are unable to buy a car, a home, or start a family due to student loan costs.
Proposed Legislation: H.R.8514 – Student Loan Relief Act (116th Congress)
Prospective Sponsor: Rep. Vicente Gonzalez (TX)
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