Economy

The high costs of student loan debt

MINNESOTA SPOKESMAN-RECORDER — For the Class of 2018, the average student borrower graduated with a debt of $29,800 in private and federal loans over the course of a bachelor’s degree. This is in addition to $35,600 in federal Parent PLUS loans approximately 14 percent of parents took out to support their children.

Published

7 years ago

March 24, 2019

Oakland Post

By MSR News Online

There’s no way around it: Americans are drowning in student loan debt. The Federal Reserve reports that nearly 50 million Americans collectively owe $1.5 trillion in student loan debt. That’s $521 billion more than the total U.S. credit card debt.

For the Class of 2018, the average student borrower graduated with a debt of $29,800 in private and federal loans over the course of a bachelor’s degree. This is in addition to $35,600 in federal Parent PLUS loans approximately 14 percent of parents took out to support their children.

Nearly 70 percent of student borrowers now have a looming bill over our heads each month — and it’s not cheap. The average monthly student bill is $393.

This is debt that’s impossible to discharge in bankruptcy, difficult to have forgiven and increasingly unlikely to be fully repaid on schedule. And, rising college costs mean that number isn’t likely to drop much in the next few decades.

Here’s a look at the costs of that debt and what’s being done to lessen the crisis.

The Direct Costs

While college costs are rising, family incomes have not. So those with student debt loans are making different money management choices. They are less likely to buy homes or start families, and more likely to live at home and take jobs just to make ends meet, instead of the more lucrative positions for which their degrees prepared them.

Short-term solutions include deferring loans by returning to school, or consolidating or borrowing from private lenders, which ends up making the problem worse. For students graduating into a tight job market whose credit ratings are impacted by the amounts they owe, loan debt can remain their chief financial concern for decades. Especially when 11.5 percent are delinquent on their payments.

What’s more, the expanding student loan bubble could rattle the entire American economy in similar ways to the 2008 housing crisis, if borrowers default on loans in large numbers.

The Hidden Costs

The direct costs of student loan debt are obvious, but hidden costs often prevent lower-income students from pursuing the highest-value degrees.

Because the most selective, prestigious institutions are also the most expensive, those institutions are disproportionately populated by students from affluent families able to afford the burden of early-career debt.

And the recent trend of “differential pricing,” in which tuition costs are dictated by a student’s field of study, has had an effect on enrollment in high-employment fields, potentially scaring off the students who could benefit the most from an in-demand degree.

Avoiding high loan debt

While there is no limit to the amount of “free money” students can apply for, scholarships and grants only cover 28 percent of college costs today. That means more than two-thirds of the bill is either borrowed or paid out of pocket (for, most it’s the former). If you’re still in school, explore all of your scholarship options — whether based on grades, special interests or even ethnic backgrounds. Every extra dollar counts.

Also, only take out as much as you need. While in school, it’s tempting to take the full loan amount offered to help cover other bills. But that extra $1500 or $2500 every semester adds up to extra debt once you’ve graduated or left school and will cost you more in the long run.

For those concerned that scholarships may affect financial aid, organizations like Scholarship America are mobilizing nationwide efforts to change that. The organization has lent support to efforts to create a network of postsecondary institutions, or Collegiate Partners, that agree to not punish scholarship recipients with reductions in financial aid. Scholarship American also has a Dreamkeepers Emergency Financial Assistance program that gives students facing unexpected expenses an alternative to loans.

“We work with partners to incorporate mentoring, tutoring and financial literacy education into scholarship awards in an effort to help students persist and graduate rather than drop out with debt or get stuck short of a degree,” said Scholarship American President and CEO Robert C. Ballard.

For those who have already accrued student loan debt, the best course of action is to tackle it head-on. Make a plan and work through it. Ignoring the bill won’t make it go away; in fact, it will just keep growing.

Information provided, in part by, StatePoint.

This article originally appeared in Minnesota Spokesman-Recorder.

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2025 in Review: Seven Questions for Sen. Laura Richardson, Who Made Legislative History This Year

Before elected office, she served as a legislative staffer at the local, state, and federal levels and built a strong academic foundation, earning a political science degree from UCLA and an MBA from USC.

Published

2 weeks ago

December 29, 2025

Oakland Post

Sen. Laura Richardson (D-San Pedro). File photo.

By Edward Henderson, California Black Media

Elected in November 2024 to represent California’s 35th Senate District, Sen. Laura Richardson (D-San Pedro) brings decades of experience to her role.

Richardson says she remains deeply committed to empowering residents, strengthening neighborhoods, and supporting the local economy.

For example, SB 748, a bill she authored that Gov. Newsom signed into law this year, allows cities to use existing homelessness funds to clear unsafe RV encampments, and another measure aimed at expanding provider access for Medi-Cal patients.

California Black Media (CBM) spoke with Richardson about her successes and disappointments over the past year and her plans for 2026.

What stands out as your most important achievement this year?

Being number one in getting the most bills signed by a freshman senator. Our team and staff were able to effectively move legislation through committees in both the Senate and Assembly and gain the governor’s support.

How did your leadership contribute to improving the lives of Black Californians?

Securing overall agency support from the governor to begin the work of understanding and documenting descendants of slavery. The discussion around “40 acres and a mule” will be ongoing for many years, but moving forward with creating an agency—although not fully funded—was significant. They were baby steps, but they were steps.

What frustrated you the most this year?

The administration. Even though federal and state roles differ, California has its own values and priorities. When the federal government makes cuts that impact Californians, the state legislature feels the need to backfill to protect people. It was challenging and frustrating.

What inspired you the most this year?

SB 237, which I was a joint principal author on, inspired me. It dealt with fuel stability. Two refineries closed, and several others are barely hanging on. Even as we work toward zero emissions, we still need a certain amount of fuel. SB 237 opened up some of the fuel potential in Kern County, and there’s a pipeline from Kern County down to my district.

What is one lesson you learned this year that will inform your decision-making next year?

Engage the governor’s staff earlier. I’m going to push to involve the governor’s legislative staff sooner.

In one word, what is the biggest challenge Black Californians are facing right now?

Affordability. No matter how much you make, everything is more expensive—gas, groceries, insurance, mortgages. Costs keep rising while salaries don’t.

What is the goal you want to achieve most in 2026?

Creating a process for dealing with abandoned cemeteries.

The last piece—not specific to this year but building toward the future—is figuring out how people and businesses in the district and in California can participate in major events like the Olympics, FIFA, and the Super Bowl, all of which are taking place here.

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2025 in Review: Seven Questions for Sen. Lola Smallwood-Cuevas – an Advocate for Jobs and Justice

I’m proud of how we fought back against the Trump Administration’s attacks, especially on the budget, and strengthened protections for workers while fortifying the cultural power of Black Los Angeles. Workers’ rights remained central in my bill package because my background in organizing taught me a simple truth: when workers do well, communities do well.

Published

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Oakland Post

Sen. Lola Smallwood-Cuevas (D-Los Angeles). File photo.

By Edward Henderson, California Black Media

Representing the 28^th Senate District, Sen. Lola Smallwood-Cuevas (D-Los Angeles) brings a lifelong commitment to working families.

After earning her communications degree from California State University Hayward (now known as CSU, East Bay), Smallwood-Cuevas began her career as a journalist telling the stories of working people—an experience that drew her into the labor movement.

Since being elected to the California State Senate, Smallwood-Cuevas has championed legislation that strengthens worker protections, expands access to justice, and uplifts historically marginalized communities.

California Black Media (CBM) spoke with Smallwood-Cuevas about her successes and disappointments this year, as well as her goals for 2026.

What stands out as your most important accomplishment this year?

I also moved forward with the creation of California’s first Black cultural district in South LA. Amid gentrification, this district will protect cultural assets and bring resources as Los Angeles prepares for the FIFA World Cup and Olympic Games.

How did your leadership contribute to improving the lives of Black Californians this year?

We must name the disparities Black communities face—higher homelessness, incarceration, and health incidents. During the budget fight, when the governor proposed zero dollars for homelessness, I pushed hard. We secured $500 million for homelessness response, reinstated $1 billion for supportive programs, and added another $500 million for affordable housing.

What frustrated you most this year?

Our people are under attack. Racial profiling is creeping back into federal policy. Crime is being weaponized to justify disproportionate incarceration—even though crime rates are at historic lows.

But what frustrated me most was how quickly diversity, equity, and inclusion were rolled back through federal orders and preemptive action by corporations and foundations.

What has been your greatest inspiration this year?

Our resilience. California does not stay down. The movement around Proposition 50 was incredibly inspiring. I saw unity across Black California.

What is one lesson you’ve learned this year that will guide your decision-making next year?

Black California is resilient and brilliant. We are stronger than our opposition. And the lesson echoes Dr. King: “Organize, baby, organize.” We must build coalitions across local, county, and state levels.

In one word, what is the biggest challenge facing Black Californians?

Visibility. Visibility is power. We must be present—in rooms, on boards, in media, in headlines. We cannot retreat from Black identity.

What is the goal you most hope to achieve in 2026?

Economic stability. When California enters a recession, Black communities enter a depression. My goal is to advance policies that create real economic opportunity through safety-net protections, contract access, and targeted local hiring for quality jobs. crisis.

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Families Across the U.S. Are Facing an ‘Affordability Crisis,’ Says United Way Bay Area

United Way’s Real Cost Measure data reveals that 27% of Bay Area households – more than 1 in 4 families – cannot afford essentials such as food, housing, childcare, transportation, and healthcare. A family of four needs $136,872 annually to cover these basic necessities, while two adults working full time at minimum wage earn only $69,326.

Published

3 weeks ago

December 20, 2025

Oakland Post

Affordable housing is the greatest concern for consumers, it’s followed by the cost of groceries. Courtesy photo.

By Post Staff

A national poll released this week by Marist shows that 61% of Americans say the economy is not working well for them, while 70% report that their local area is not affordable. This marks the highest share of respondents expressing concern since the question was first asked in 2011.

According to United Way Bay Area (UWBA), the data underscores a growing reality in the region: more than 600,000 Bay Area households are working hard yet still cannot afford their basic needs.

Nationally, the Marist Poll found that rising prices are the top economic concern for 45% of Americans, followed by housing costs at 18%. In the Bay Area, however, that equation is reversed. Housing costs are the dominant driver of the affordability crisis.

“The national numbers confirm what we’re seeing every day through our 211 helpline and in communities across the region,” said Keisha Browder, CEO of United Way Bay Area. “People are working hard, but their paychecks simply aren’t keeping pace with the cost of living. This isn’t about individual failure; it’s about policy choices that leave too many of our neighbors one missed paycheck away from crisis.”

The Bay Area’s affordability crisis is particularly defined by extreme housing costs:

Housing remains the No. 1 reason residents call UWBA’s 211 helpline, accounting for 49% of calls this year.
Nearly 4 in 10 Bay Area households (35%) spend at least 30% of their income on housing, a level widely considered financially dangerous.
Forty percent of households with children under age 6 fall below the Real Cost Measure.
The impact is disproportionate: 49% of Latino households and 41% of Black households struggle to meet basic needs, compared to 15% of white households.

At the national level, the issue of affordability has also become a political flashpoint. In late 2025, President Donald Trump has increasingly referred to “affordability” as a “Democrat hoax” or “con job.” While he previously described himself as the “affordability president,” his recent messaging frames the term as a political tactic used by Democrats to assign blame for high prices.

The president has defended his administration by pointing to predecessors and asserting that prices are declining. However, many Americans remain unconvinced. The Marist Poll shows that 57% of respondents disapprove of Trump’s handling of the economy, while just 36% approve – his lowest approval rating on the issue across both terms in office.