Friday 18 August 2017

Student loans will make graduates flee. Face it, tax is the best way to fund third level

In his study of student debt, Professor Brent Ambrose of Penn State University also found that individuals carrying student debt were significantly less likely to start their own business because of their limited credit capacity. (Stock image)
In his study of student debt, Professor Brent Ambrose of Penn State University also found that individuals carrying student debt were significantly less likely to start their own business because of their limited credit capacity. (Stock image)

Niamh Hourigan

As Hilary Clinton and Bernie Sanders began to kiss and make up this week, it was easy to forget how close he came to securing the Democratic nomination. One of the reasons Hilary 'felt the burn' so intensely was Sanders' resonance with young middle-class voters and, in particular, his emphasis on the need to change policy relating to student debt.

He pledged that he would "fight to make sure that every American who studies hard in school can go to college, regardless of how much money their parents make and without going deeply into debt". This commitment was a recognition of the spiralling financial crisis amongst middle-class Americans, which is linked to student debt.

In 1989, just 4pc of Americans were still repaying student loans at retirement age; by 2013, that figure had mushroomed to 30pc. The burden of student debt has had a massive impact on the ability of Americans to access home loans.

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