President Joe Biden released his long-awaited student loan forgiveness plan. Despite the plan having a large reach to those who would need it most, the plan and President Biden fail to address the real problem: colleges and universities continue to drive tuition and cost of attendance prices up while incomes remain stagnant.
According to the Education Data Initiative, 54.1% of undergraduate students accepted student loans to support themselves throughout secondary education. That number grows when examining undergraduate students who live on campus with 63.6% requiring loans.
Students may feel they have no choice but to take out loans because of societal expectations of the younger population to pursue higher education to achieve a higher standard of living. One where financial troubles are supported by income afforded to them by degrees from college.
Despite this, the average price of a higher education continues to skyrocket year after year with assistance from the COVID-19 pandemic.
Going back to 1963, the yearly cost of tuition from public 4-year college had the same buying power as $2,345.39 today with inflation adjusted. Contrasted with today’s average annual cost of $21,000 and it is clear where the problem lies.
The National Center for Education Statistics shows that the average costs of tuition at the University of Wyoming lacks stagnation as well, with an average annual tuition increase of 3.54%. At the current growth in prices, Wyoming students who qualify for in-state tuition could expect to pay over $26,000 for a four year education while out-of-state students are looking at a cost of over $93,000.
On the surface, the plan does attempt to give lower income students greater opportunity to afford higher education, which President Biden believes is the ticket to the middle class. This is done by a $400 increase to maximum Pell Grants. Yet, outside of scolding institutions with the use of an annual watch list, the plan does nothing to stop soaring tuition prices.
If student debt as a whole is to be properly addressed, then the Biden administration needs to focus on punishing higher education institutions directly. True penalties need to be served to those who continue to prey on people who seek degrees to better their own lives, as well as their families.
College can be a wonderful place for people from all demographics and socioeconomic statuses to spread ideas and share an incredible amount of knowledge. However, this opportunity will continue to suffocate under the financial stress of institution attendees as long as the rising price of attendance continues to go unchecked.
