My monthly loan payments are more than any mortgage in my family, and I have 20-30 more years ahead. Should I not travel abroad or enjoy any facet of life until I'm 50?
The "pull yourself up by your bootstraps" generation was able to buy a house by 30 and support a family of 4 on a factory worker's salary. That is impossible today. Even people who pursued STEM, finance/accounting, or business degrees over something inherently low-paying like Gender Studies aren't able to make that lifestyle a reality, which itself paints a stark picture of the socioeconomic divide that's expanded over the last 60 years. We're inching closer to a society where only rich families can afford to give their kids an education, and anyone else who tries will be financially crushed for decades.
I know people who make 40k in California, yet are expected to pay $700 each month on their student loans. Of course they can't, so they either default and kill their credit score, or go into forbearance and watch helplessly as a 7% interest rate slowly inflates their principle. DeVos wants to magnify that. People will default not only because they can't pay, but because she also wants to reintroduce predatory lending practices, such as a lender not even having to notify a borrower that it's time to recertify their loans. That means your payments will suddenly double or triple without warning, and you'll be stuck at that higher rate for 3-4 months while they slowly process your recertification paperwork. Most people simply wouldn't be able to pay that increased rate (I certainly wouldn't), and you're back in that default/forbearance cycle. If that happens on a grander scale, my generation won't be buying houses, cars, or much of anything. If you wanted to stifle the American economy, destroy the socioeconomic ladder, and lead directly to another financial crisis, this is a perfect avenue to travel.
