People across America continue to fall into the predatory confines of student loan debt. Currently, we have nearly $1.75 trillion in total US student loan debt. The atrocity of this crisis has gone to such lengths that there is even a game show called Paid Off that is dedicated to helping students settle their debts. The fact that students have been relying on comedic shows rather than their government to address a topic as serious as student debt is problematic. This crisis is multifaceted and, while the position we are in currently is partly due to the choices we have made as a society, the government and universities nationwide must be ready to take action and ease this situation. 

This crisis began when student loans were first offered under the National Defense Education Act (NDEA) in response to the Soviet Union launching Sputnik back in the 1960s. The perception that the US was falling behind in the science and technological sectors led to efforts that made education more accessible through student loans. Initially, this was a success. During this time, the government and banks worked together to offer loans to students. These types of loans were issued by private lenders and were backed by the government, meaning that if a student defaulted on their loan, the government would have to pay. Discerning that banks acted as unnecessary middlemen in this situation, Obama eliminated them in 2010, and students began borrowing money directly from the government. Unwilling to do this tedious task by itself, the government began outsourcing loan management to private loan companies, setting the future of student loans down its destructive path.  

 Statistics from “A Look Into the History of Student Loans” show that between 2010 and  2012, when private companies began providing loans, student debt rose from $811 billion to over $1 trillion. Many companies offer student loans but Navient, a company that has the most borrowers and, ironically, the most complaints is known to be the least sincere. The premise of their operation is to take advantage of individuals. Being accused of overcharging military members, and forcing students to go into forbearance––when a student can temporarily stop making payments but will be obliged to pay more money later to make up for the missed payments––are common complaints about this loan service. The goal of Navient’s call centers is to have the fastest calls possible to maximize profits. For example, if a student called to ask about an income-based plan, which adjusts the amount of money they pay each month based on their income and family size, the call operator would be encouraged to direct these distressed individuals into forbearance to save the company’s time and money.

Students’ lives are mere games for companies like Navient: the call centers would have “Competitions between teams, and during March Madness, managers created a bracket on the wall and had agents compete against one another to collect payments and resolve accounts” (How America’s Student Loan Giant Dropped The Ball). With servicers like Navient being the face of student loan management, it is no wonder that America has over a trillion dollars in debt. The most infuriating aspect of this situation is that students are not allowed to choose their loan servicer, and are instead automatically assigned to one by the Department of Education. 

Luckily, in late 2021 Navient ended their student loan contract, and a new company called Aidadvantage replaced it. Unfortunately, a report from “The Student Borrower Protection Center and the Communications Workers of America”’ states that Aidadvantage was “accused of a growing list of scandals and abuses”. Aidadvantage is no better than Navient, and most students continue to suffer because of these loan servicers. The root cause of this situation stems from the Department of Education repeatedly appointing loan servicers who offer no real help. When loan services put profits over individuals’ lives, they hurt those who are most vulnerable: the students.

President Biden and his administration have taken steps in the right direction but not without staunch opposition. His board cancellation plan of $132 billion for 3.5 million Americans was shot down by the Supreme Court and conservatives argued that he overstepped his boundaries as President and was putting a new burden on taxpayers for all the lost money. Despite this, he has asked the Department of Education to create a new plan that targets a smaller range of struggling individuals. Under this plan, those who have older loans, loans that increased substantially due to rising interest rates, or face hardship due to their student loans could have their loans forgiven.

 With these actions, there may be a future for students struggling with their debt but this problem can only be fixed if the government takes consistent action with the students as their foremost priority. Only then can the nation move forward to seeing secondary education as a way to grow a career and discover lifelong passions rather than a bottomless hole in their bank account.