U.S. student debt has grown over 100% in the past 10 years

As 2020 draws to a close, it is clear that the year will be marked by a series of grim statistics. More … than 300,000 Americans have died from Covid-19. There is always 10 million fewer jobs in the United States than before the start of the coronavirus pandemic

And as students across the country pivoted between campus learning and distance learning, 2020 was also the year the United States first exceeded student debt by over $ 1.7 trillion.

the Federal Reserve estimates that in the third quarter of 2020, Americans owed more than $ 1.7 trillion in student loans, an increase of almost 4% from the third quarter of 2019.

The increase in student debt for decades is even more noticeable compared to previous decades. In the third quarter of 2010, Americans owed an estimated $ 845 billion in student loans, which means that U.S. student debt has grown by about 102% over the past decade.

Source: Federal Reserve Bank of Saint-Louis

In response to the growing total, lawmakers this year proposed a series of student debt relief policies.

In March, the CARES Law put in place a pause on federal student loan payments, which has since been extended twice until January 2021.

Both lodge and Senate Democrats have introduced resolutions urging President-elect Biden to “Largely” cancel up to $ 50,000 in federal student debt for borrowers by executive action.

While such resolutions cannot compel the new Biden administration to take such action, they add to the growing pressure on Biden to keep his campaign promises and pass student debt relief.

During his campaign, Biden proposed to create a program which provides $ 10,000 in undergraduate or graduate student debt relief for each year of national or community service, up to five years.

According to Proposal, “People working in schools, government and other non-profit institutions will automatically be enrolled in this forgiveness program; up to five years of prior national or community service will also be eligible. “

When CNBC Make It Asked Experts About Biden’s Proposal, many said the policy was politically prudent.

“It’s one of the biggest economic issues that affect people,” said Aaron Smith, co-founder of Savi, a public benefit corporation whose objective is to help borrowers manage their student debt. “Student loan debt is now more important than credit card debt. It’s a huge challenge facing the country, and it’s something that really motivates people to vote and get the word out. “

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