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(COLUMBUS) –The Ohio Association of Community Action Agencies (OACAA) commends President Joe Biden and the U.S. Department of Education for their plan to provide some relief from student debt for low and middle-income households.
“Education continues to be a strong path out of poverty and college degrees correlate with advanced income potential,” said Philip E. Cole, executive director at OACAA. “Students do not take college loans intending to default, yet an imperfect system often made repaying those loans nearly impossible for low- and moderate-income households.”
Rising tuition costs, reductions in state funding for state colleges and universities, and Ohio’s low funding for state need-based grant programs have contributed to Ohioans’ high student loan debt. Combined these policies have helped lead Ohio to lower median income when compared to other states.
“If we’re going to support corporations through large tax breaks and bailouts, why is it not right for the Nation to do the same for the middle and lower income Americans?” Cole asked. “Forty-five million people drowning in student loan debt are not outliers. And, with the high interest rates, young Americans have too often had to select loan repayments over buying a home or a car or having a child. President Biden took a step to help the economy with this program.”
In researching barriers of low-income Ohioans for the 2022 State of Poverty in Ohio Report (scheduled for release next month), student loan debt was found to be a significant barrier for Ohioans striving to reach self-sufficiency. OACAA believes this important and targeted step will provide necessary relief to families and make a more manageable future for borrowers.
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