By David Cruz
Correspondent
There was sort of a debate on the campus of Rutgers University in Newark. The topic: the role of the federal government in easing the burden of student loans and making college more affordable, or free in some cases, as President Obama has proposed. But the deck was stacked. On the pro side, three-time debate team captain and national champion Elijah Smith. On the con side, freshman Subroto Sinha, who held his own when debating the president’s free community college plan.
“The majority of community college students never earn a degree or certificate and even the most optimistic transfer rate suggests that about 42 percent of community college students [don’t have] the intention of obtaining a bachelor’s degree,” argued Sinha.
But Smith countered, “More and more jobs, just like being an auto mechanic, now require IT training, specialized training that you would not get, which is why a proposed two-year plan, like Sen. Booker’s is necessary so that everyone can access a college education.”
Sen. Cory Booker and a crowd of mostly students were on Smith’s side on this issue. It was, after all, Booker’s event and he wanted to make a point about college affordability and his plan to make access to college not only cheaper, but easier.
“It costs about 5 percent of median income to go to college in Germany. Canada is about 6 percent,” noted Booker. “Anybody have any idea what it is in the United States? Twenty percent? Twenty-seven percent? Thirty percent? Thirty-nine and a half? That’s a very good guess but you’re all wrong. Fifty-two percent!”
Smith said he’s one of the lucky ones. He won’t have to spend the next decade paying off huge loans. “I have a little bit of debt but it’s not as bad as other students have,” said the senior who will attend Wake Forest for a master’s in communications next year. “But I am an independent student. I’m not in as much debt because I work a lot. I work every weekend; I work weekdays to try to make ends meet.”
Booker is a co-sponsor of a bill that would streamline the loan application process down to a postcard and give families early notice about how much aid they’ll get and make it easier to set up payment plans. Booker said the federal government loan program is profiting off some of its most vulnerable citizens.
“I can refinance my car loan. I can refinance my house loan. Heck, I watch Montel on TV and he says I can refinance my credit card debt. But I can’t refinance my student loan,” said Booker. “And what’s the reason for that? Because the government has a policy that’s just wrong, that says we’re going to continue to profit off of you.”
The Congressional Budget Office says the federal government will make $127 billion over the next decade on the student loan program, and the average graduate owes around $26,000 in loans. Booker’s bill, while co-sponsored by some Republicans, would appear to have a tough road ahead as conservatives seek to cut costs and the government struggles to find as many income streams as it can, even if that means millions of new graduates burdened with student loan debt.