Despite the rhetoric and debate over the problem of enormous student loan debts, a new report from Moody's Investors Service says little is being done about it.
According to Moody, the main drivers of growing student loan balances historically have been higher enrollment and rising tuition costs. "More recently, however," says a Moody research announcement, "slow repayments have become a key driver of what was the fastest growing type of household debt in the last decade." That means the amount of student loan debt continues to grow each year, reports Breitbart News.
Mary Clare Amselem of The Heritage Foundation says politicians preaching that the student debt should just be wiped out will only aggravate the problem.
"I fear we're going to see an increase in students defaulting on their loan in the hopes that some policy will sort of come in and wipe away that debt, when, in reality, students did take out these loans. And it's the American taxpayers who'll be left in the lurch," Amselem submits.
She says the student loan debt, now at $1.7 trillion, is headed toward $2 trillion. And though it is a problem for graduates, it is a "sweet deal" for colleges and universities.
"The universities get to charge more tuition every single year, and they don't have to worry about losing students because the federal government is coming in saying, 'Don't worry; I'll give you a loan,'" Amselem tells OneNewsNow.
She suggests taking a look at whether the federal government's role in lending to students is doing more harm than good.