The outcome of the 2020 election will affect us all but some issues will be more impactful than others, especially to college students. The debt crisis, federal assistance, grants, and even tuition reimbursement are all issues that each of the presidential candidates will include in their agendas, regardless of how they choose to handle them. Here are four reasons you should care about these issues.
1. Student loans
According to Investopedia, the overal student debt total has totaled “an all time high of 1.41 trillion dollars in 2019.” In another report done by The New York Times, the average college grad from 2019 would have to pay back around $30,000 in loans. For most of us, being in college means being broke and living off of ramen noodles. Boxed wine is often a treat, and eating out is reserved for special occasions. High student loan rates are dangerous to our futures and will cause stress for decades.
2. Unemployment
Recent graduates between the ages of 22-27 are more likely to be unemployed compared to overall workers, according to Forbes. The national unemployment rate is 3.5% as of December 2019. This means that college students and recent graduates have a higher chance of not being able to find a job. Paying off those student loans suddenly becomes a lot scarier, huh?
3. National debt
According to Forbes, about 25% of people who take loans were either in delinquency or default at the end of last year. Being recognized as delinquent affects your ability to be qualified on for car loans, mortgages and even something as small as being approved for a small line of credit. Hearing the amount of debt that our country is in is difficult to wrap one’s head around. The average amount of debt for a person under the age of 35 is $67,400. That’s even more than those student loans you were worrying about earlier.
4. High taxes
One way to pay off some of that $1.41 trillion dollar debt is to raise taxes in the U.S. With the addition of President Trump’s tax plan, the standard deduction doubles meaning a single filer like you (unmarried, without children or a student) is impacted. Add this to the debt from student loans, and you end up making a lot less than the yearly salary of whatever job you work.
This information on the economy isn’t meant to scare anyone, but to show how the economy affects us all. As students, we should watch the presidential race carefully and decide which candidate, if any, will help our wallets in the long-run.