American college graduates are swimming in student loan debt. In the last decade, it eclipsed consumer credit card debt and auto debt, respectively. Now, at nearly $2 trillion nationwide, total student loan debt is second only to mortgage debt.
As CNBC reporter Annie Nova writes, “Around 43 million people in the U.S. are in debt for their education. Each year, 70 percent of college graduates start off their lives in the red. And their average balance is around $30,000, up from $10,000 in the early 1990s.”
In Florida, the numbers are even higher. Students who take out federal and private loans owe $35,496 per borrower, bringing Florida’s total student loan debt to more than $94.3 billion. That isn’t sustainable, which is why I propose we give students a pathway to prosperity.
Many politicians believe the only solutions to the ongoing debt crisis can come from Congress. In reality, states are better equipped to address spiraling debt because state legislators have a better sense of the situation on the ground. We know our schools, we know our students, we know our job markets.
A recent piece of legislation introduced in Florida’s House of Representatives, House Bill 1261, shows a path forward for other states facing a student debt crisis. We hope that the lessons we have learned in Florida can be applied nationally.
In addition to the student loan debt incurred, there is also a widening workforce gap that will harm Florida’s economy if not addressed. Reducing student loan debt and closing the workforce gap require sound policy solutions that prioritize students and families.
There is no greater joy than watching your child reach their goals and succeed throughout their educational career. However, during these uncertain times, families are making tough financial decisions that can jeopardize a student’s ability to succeed.
That is why I am fighting for legislation that prioritizes the success of students and responsibly uses Floridians’ tax dollars. The bill provides a partial tuition waiver for students whose chosen degree is linked to a high-demand occupation.
For instance, there is a shortage of registered nurses in Florida, to the tune of more than 57,000 needed by 2030; this bill would allow an aspiring registered nurse the ability to “buy one, get one” on upper-level courses.
This change ensures that Florida’s businesses can fill job openings with graduates from Florida’s colleges. State legislatures nationwide would be wise to consider similar changes to incentivize students to pursue high-demand careers.
In addition to the “BOGO” of upper-level courses, the bill tackles student loan debt for Floridians that attend any of the Independent Colleges and Universities of Florida (ICUF).
Florida has bountiful opportunities for students through the Florida Prepaid and Bright Futures programs that reduce the debt burden and allow families and students to plan their future.
Currently, ICUF institutions (private non-profit colleges) receive up to $3,000 per student of taxpayer dollars through the Effective Access to Student Education Grant (EASE) with no metrics in place to hold institutions accountable.
Even more concerning are the dismal graduation, post-graduation employment, and retention rates at some of these institutions. In some cases, colleges that cost more than a Florida public university are graduating less than 20 percent of their students.
By not holding these institutions accountable, we are enabling taxpayer dollars to facilitate cyclical debt and unemployment for students who would otherwise benefit from an affordable option with a direct path to employment.
HB 1261 enacts accountability metrics for these institutions to receive EASE funding. These minimum standard metrics include a graduation rate of at least 48 percent, an academic retention rate of at least 71 percent, and a post-graduate employment rate of at least 77 percent.
If taxpayer dollars are given to private institutions, states must hold these institutions accountable to ensure they uphold their mission of preparing students for a better future.
This bill serves as a promising model to other states looking for solutions to the ballooning student debt crisis. We are ensuring students can receive the best educational opportunities possible while emphasizing efficiency and accountability.
This bill will increase the efficiency of taxpayer dollars and ensure we are not sending Florida students to institutions that do not lead to legitimate employment while incurring hundreds of thousands of dollars in debt.