The Student Loan Crisis: Raising Debt, Delaying Adulthood
For half a century, Americans were told the formula for a stable life was simple: Go to college, earn a degree, get a good job, buy a home, and start a family.
But roadblocks kept popping up along the way.
Tuition kept rising faster than inflation
student aid expanded year after year, yet so did tuition
degrees that once opened doors became increasingly shaky investments.
Meanwhile, younger generations began delaying major life milestones, or missing them altogether.
A lot of commentary about this subject devolves into partisan finger-pointing. But the deeper issue is incentives. Once colleges knew the federal lending system would keep expanding access to unlimited student debt, the normal price pressures that restrain costs evaporated. Universities added layers of administration, started amenities arms races, and inflated tuition far beyond what many graduates could realistically repay.
At the same time, the labor market increasingly split into two economies: one dominated by credential inflation and financed white-collar career paths, and another desperate for skilled labor that fewer young Americans were encouraged to pursue.
The result: We now have shortages in trades, absurd credential requirements for entry-level jobs, and millions of borrowers wrestling with repayment systems that grow more complicated by the year.
That larger economic story is what led me to write my new nonfiction book Debt Reckoning.
The Kickstarter campaign for the book is now live. This project examines …
how the student loan system evolved
why college costs continue to rise
how perverse incentives distorted higher education
what borrowers can do to navigate the often complex repayment, consolidation, and forgiveness options currently available
and what reforms could help prevent future generations from inheriting the same burdens.
The launch also includes a limited Special Reward available only through Memorial Day weekend, including the Kickstarter-exclusive eBook, paperback, hardcover, signed Collector’s Bookmark, acknowledgment credit, and a personalized signed inscription label from me.
If the project sounds interesting to you, you can check it out here.