Amid ballooning costs, college and the means to pay for it are turning into a potential bubble and national problem that could disrupt economic stability. As a result, the major political parties have both come out with definitive plans to get the problem under control. However, the politicians tasked with tackling burgeoning student debt have divergent opinions on how best to do that.
In 2013, the amount of money student loan borrowers owed the federal government crossed the $1 trillion threshold for the first time, according to the Consumer Financial Protection Bureau. For the class of 2016, the average student graduated with $37,172 in loan debt.
On Friday, the Republican National Committee released its official stance on the student loan issue. The solution, according to the GOP's best thinkers, is for the government to get out of the business of providing student loans and leave loan origination to the banks.
"The federal government should not be in the business of originating student loans. In order to bring down college costs and give students access to a multitude of financing options, private-sector participation in student financing should be restored," the party's official platform stated.
That stance is a repudiation of the 2010 federal legislation that scaled back the role of private lenders providing student loans. The banks now act as middlemen, collecting fees and keeping records while students go through federal channels to secure the loans.