Paying Off College Debt Could Take a Lifetime

The video discusses the grim state of the student loan crisis, highlighting that borrowers are only paying down about 1% of their federal debt annually. This slow repayment rate has turned student loans into a significant political issue, with progressives advocating for bailouts and conservatives blaming government policies. Income-based repayment plans have helped reduce delinquencies but have also slowed repayments. The video also notes that the economic context, with low unemployment and a long economic expansion, could worsen the crisis if conditions change.

What is the annual repayment rate for the average student loan borrower?

• 10%

• 1%

• 5%

• 3%

Why do progressives propose a bailout for student loans?

• Because the government has reduced borrowing

• Because tuition has decreased

• Because tuition has outpaced inflation and wages

• Because student loans are easy to repay

What do conservatives blame for the student loan crisis?

• The economy

• The government

• The universities

• The students

What is one effect of income-based repayment plans?

• Increased delinquencies

• Faster repayments

• Reduced defaults

• Higher interest rates

What could worsen the student loan crisis according to the video?

• Higher wages

• Decreased tuition fees

• Increased unemployment

• Improved economic conditions