While the title off this article may sound absurd, it is not.
In March of last year, Federal Reserve Chief Jay Powell testified before Congress that student loan indebtedness could have a material impact on economic growth. For the first time in our country’s history, some analysts feel that student loans may trigger, or at least help initiate, the next recession. How did we get here?
CNBC published an article highlighting how quickly student loan debt can balloon out of control.
“Rick Tallini didn't worry much about the $55,000 in federal student loans he took out for law school in the 1990s. His future seemed bright.
Yet in the decades since he graduated, he's struggled to find employment and pay the bills. His original student loan balance, meanwhile, has soared to well over $300,000.
‘They'll tack this thing to my coffin at this point,’ Tallini, 61, said.”
This is obviously an extreme case, but it is illustrative of how student loans can take over individual’s financial future and freedom. What else can you do when you graduate with loans and it may take a while before you are earning enough to start paying down that debt. What started off as pathway to success, becomes a path to financial ruin.
Now, how does this become MY problem. It is easy to see how, collectively, the student loan debt hanging over people’s head may eventually slow economic growth, which turns into a recession. Then, that recession causes unemployment to rise, and more students like Rick stop making payments on their loans, the debt level rises further, economic problems linger, and even those who never took out loans are affected by your debt problem.
The solution is not to go into debt in the first place. The US needs more schools like Oak Valley, where there is no such thing as a student loan and students graduate with financial freedom.. While we do not promise that Oak Valley will lead to financial nirvana, there is no doubt that Oak Valley is a solution for many young people who dream big and are able to pursue their future with financial freedom.
We encourage you to be part of the future at Oak Valley College. Be a donor, student, or advisor. Email email@example.com to learn more.