Student loans are “ridiculous,” according to Representative Alexandria Ocasio-Cortez.
Here is what you need to know.
In a speech on the House floor, Ocasio-Cortez (D-NY) rallied against “crushing” student loan debt and called on President Joe Biden to cancel student loans. “This is getting ridiculous,” Ocasio-Cortez said, referring to student loans, at the start of his speech. “It’s getting ridiculous.” Here are some highlights and fact-checks from his speech:
1. 17 year olds can borrow “hundreds of thousands of dollars in debt”.
Ocasio-Cortez, who is a first-generation college student on her mother’s side, lamented that teens can borrow hundreds of thousands of dollars to attend college. It’s a retrograde practice, she says.
Checking the facts: True. Our education system allows young people to borrow large student debt, often without a full understanding of student loan repayment, potential future income, or career prospects. As a result, many student loan borrowers are struggling with student loan debt for years, if not decades. (How to Apply for a Limited Student Loan Discount).
2. There is $ 1.7 trillion in student loan debt
According to the latest student loan statistics, 45 million borrowers collectively owe $ 1.7 trillion in student loans. (Here’s who qualifies for the student loan waiver right now).
Checking the facts: True.
3. I didn’t get a graduate degree because I knew it would drown me in debt.
Ocasio-Cortez, who says at 32 she has over $ 17,000 in student loan debt, chose not to graduate from graduate school because of the cost and expected debt of student loans.
Checking the facts: Ocasio-Cortez is not alone. High school students must decide whether they want to attend a community college, state college, private college, or no college at all – and cost can play a major role. Likewise, university students with large student loan debt are worried about taking out more student loans to earn a graduate degree. (Here’s how to qualify for automatic student loan cancellation).
4. “65% of all jobs in this country require education beyond high school. “
Since most employers require a college degree, students have little choice but to go to college, borrow student loans, and spend years paying off student loans.
Checking the facts: Not all jobs require a college degree, even if the employer says so. More and more companies are going against the trend and not requiring a college degree. Tech companies like Google
5. Hundreds of thousands of borrowers owe more on their student loans than when they borrowed.
Compound interest can be expensive, especially when it comes to student loans. Student loan borrowers have been granted temporary student loan forbearance due to the Covid-19 pandemic. As a result, federal student loan borrowers got $ 110 billion in student loan cancellations. With less than two months until the expiration of this student loan relief, federal student loan borrowers have a unique opportunity to pay off student loan balances with no new interest accrued. This means that after paying off past interest, every dollar they pay off their student loan will directly reduce their principal balance. (These borrowers are not eligible for the limited student loan exemption).
Checking the facts: True.
6. “Student loans are for the privileged” is “a ridiculous claim”.
Ocasio-Cortez said she looked forward to the Biden administration “no longer pushing forward the false narrative that student loan debt is for the privileged.” What a ridiculous claim. Do we really think a billionaire’s kid takes out student loans? Go on!”
Checking the facts: False. The Biden administration did not advance this account. There have been debates over the cancellation of student loans and whether a large-scale cancellation of student loans would disproportionately benefit the wealthiest student loan borrowers. However, the president or his administration did not claim that student loans were for “privileged” student borrowers.
With student loan relief expiring January 31, 2022, make sure you know how to deal with student loan debt. Here are some popular ways to pay off student loans and save money: