While Minnesota’s economy continued on its recovery path in 2015, our student loan debt crisis worsened and precluded the full economic participation of the more than 800,000 student loan debtors in Minnesota. Unfortunately, our state’s college graduates now leave school with an average of $30,894 in student loan debt obligations, which amounts to the fifth highest rate in the nation.
Of course, this lofty average does not consider the totals of those who dropped out of school and face a mountain of debt without a degree. In any case, lawmakers failed Minnesotans in 2015 by doing nothing to address the fact that student loan debt continues to rise and severely limits – and will continue to limit – generations of Minnesotans from reaching their full potential. My resolution for 2016 is to lead the fight to buck this trend and take steps to resolve our student loan debt crisis.
Due to the Minnesota legislature’s disinvestment in higher education during the Great Recession, the cost of college skyrocketed, which has left too many students with the option of either not pursing a degree or racking up astronomical amounts of debt in order to earn one. Making matters worse are the pervasive number of high-interest loans available to students, along with a lack of financial literacy training needed for many students to fully comprehend the consequences of borrowing such large amounts.
Once saddled with student loan debt and faced with massive monthly payments, more and more recent college graduates and others are forced to hold off on starting families and have a lesser ability to contribute to our economy by purchasing big ticket items such as homes and cars, long seen as elements of reaching the American Dream.
Other states have recognized this problem and are taking bold steps address it. New York recently began accepting applications for its new “Get on Your Feet” program, which covers two years of student loan repayments for graduates of New York colleges and universities making $50,000 per year or less. I applaud leaders of that state, including Gov. Andrew Cuomo, for their efforts in passing this measure, and hope that in Minnesota we can take a similar path.
Like a myriad of other issues, the 2015 Minnesota legislative session was a missed opportunity in both making college more affordable and reducing the debt burden faced by graduates and other debtors. Last session, I introduced a pair of bills that sought to tackle both issues. The first would have provided grants to high-achieving Minnesota students covering any tuition and fees not taken care of by other private grants or scholarships. The other would have provided for up to a $5,000 refundable tax credit to cover student loan payments for all Minnesotan student loan debtors.
Unfortunately, the GOP House Majority stopped both of these bills in committee. What’s more, not only did they halt these reforms, but despite a large budget surplus, they inexplicably failed to continue the tuition freeze for all Minnesota college and university students. Minnesotans deserve better in 2016.
A college degree remains a valuable investment not just for opening doors to higher-paying employment opportunities, but for the opportunity to become a more engaged, well-rounded citizen. We must provide every student who chooses to continue their education with the tools necessary to take full advantage of these opportunities. We should also encourage them to stay, work, and raise their families right here in Minnesota.
With a $1.871 billion budget surplus, now is the time for policy makers to take action addressing this significant roadblock to success for many Minnesotans. Incremental steps, such as extending the tuition freeze for all students at the University of Minnesota and MnSCU campuses, would certainly help, but this problem will take creative and thoughtful measures to ensure these opportunities exist for everyone now, and in the future.
It’s easy to provide lip service to those effected by this epidemic. In 2016, let’s not take the easy way; let’s do the hard work to ensure that students, graduates and their families don’t continue to fall into the financial peril caused by student loan debt.
I promise to do everything I can to make this New Year the start of a new trend – one which demonstrates Minnesota to be the nation’s leader in providing all who seek to continue their education here with an opportunity to live their dreams by resolving the student loan debt crisis.
Jon Applebaum represents District 44B in the Minnesota House of Representatives, which includes the communities of Minnetonka, Plymouth and Woodland. He can be reached by phone at 651-296-9934 or email at rep.jon.applebaum@house.mn.
(This piece originally ran in the Sun Sailor newspaper).