Wisconsin students are getting bombarded with student loans at one of the highest amounts across the nation, but that could change.
Currently, Wisconsin students are 13th in the nation of the highest loan debts at graduation day with an average of $31,705, quite a bit higher than the national average of $29,650. Additionally, 64% of Wisconsin graduates end school with debt, ranking seventh highest in the nation.
I believe that students should be able to go to college to further their education and not have to worry about affording it or struggling to repay once they are further in their careers. I think the government should step in, even just a little bit, since students going to college continue to further their education are creating a positive economic presence after graduation.
To achieve this, the government can do a few things, including offering tax incentives for employers to help pay students back. Tax incentives could include tax breaks for companies, which in the business setting is a big deal. If their taxes are lowered, that means more profits.
An alternative to this would be to offer the tax incentive straight to the student instead of giving it to a company. They should only offer the incentive if students stay in Wisconsin after graduation and only offer it if they do indeed graduate. If you don’t graduate, you don’t get the tax break.
Another solution would be to lower the interest rates for all student loans or just for those who are lower-income borrowers.
Sen. Elizabeth Warren has proposed a change to student loans, one of which would forgive 95% all student loans, which would be an incredible change.
According to CNBC, her proposal states that borrowers with household incomes under $100,000 would get $50,000 of their student debt forgiven. People who earn between $100,000 and $250,000 would be eligible for forgiveness on a sliding scale: $1 for every $3 a person earns over $100,000. Unfortunately, those who earn more than $250,000 would not get any debt relief.
Such changes would provide Wisconsin student graduates with an ease of worrying about how they are going to pay off their debt. They can instead focus on their studies as well as working toward making our economy even better than it is.