Student loan balances have ballooned over the past 20 years, growing from $260 billion in 2004 to $1.6 trillion by 2025. According to a recent Point survey, 42% of American homeowners are currently paying student debt for themselves or a family member. Another 37% plan to take on student debt in the future including 10% who don't currently have any student debt.
The average cost of tuition and fees at private four-year colleges has risen 181.3% over the past two decades, leading many graduates to face significant student debt.
A typical student graduating from high school in 2025 could take on an estimated $40,000 in student loan debt before completing their college education, amidst rising interest rates.
"So here we are at a time in which the cost of college is already too high for millions of students," said Senator Elizabeth Warren. "Donald Trump and his Republican buddies in Congress are not lowering them. They are adding $400 a month on average to the family's costs."