We have heard so many of unfortunate US citizens got impacted from this program, which supposed to help them rather than to add more miseries in their life. When the US Congress started this program about 60 years ago, never had their thoughts such negative effects prevail. The next questions that one might have are what the policy makers need to do now? One for all solutions to the country student loans challenges?
So far these are the partial solutions that both the American public and the current US lawmakers are trying to do, but they are partial, and will not solve the root of the problems.
- Hundreds US companies have tried to ease some of their employees’ student loans program by giving some assistances.
- US Congress are working or have passed the following Act.
Let us diagnose where the problems are, by critically ask the following questions: Why after 60 years these problems occurred. What such changes have occurred during that same period of time. What the potential sources that might have caused such problems to occur?
These are the first starting points that may get trigger the researchers’ interests to delve and roll their sleeves, and make their hand dirty to find the answers of $1.41 trillion challenges. So, far we heard more from reporters than researchers. Reporters’ roles are to report, to make the public aware, and may not necessarily directed to solve the public issues. In this gigantic challenge, lawmakers need to team up with researchers to find the optimal solutions, based on logical reasoning, scientific approaches and back up by historical data to find possible causes, but not just the symptoms.
So far, there is no evidence that the industry is moving toward Pareto efficient, not even close to Pareto Improvement. Increasing student loans with all the other related problems, such as default rate, loan servicing collection agencies’ practices, and other related issues are getting worse everyday. These string issues dragged the country further away from the possibility to solve it. They even accelerate the process toward massive financial crises.
When the US unemployment rate is the lowest in decades (DOL reported at 3.9% in August, 2018), while the DOW reaches the historic high (26,616.71 on January 26, 2018), one might think that they may negatively correlate with student loans debts and default rate. But that is not the case in realty. Its seems that everything related to students loans are going against the logic. That makes the life of a researcher more interesting–that makes solving this problem brings excitement–that will increase the rush of adrenaline in the bloodstream, and last but not the least important, it may open an opportunity to be the next Nobel Laureate down the road. Having said that, the Association invites both the Saltwater and Freshwater School of economics thought to make national contributions to answer these challenges. Let the discussions begin.