DeVos Speech Warns of Student Debt Crisis, Addresses Issues with Federal Student Aid Program

Yesterday, U.S. Secretary of Education Betsy DeVos gave a speech at the annual Federal Student Aid (FSA) Training Conference in Atlanta focusing on student loan debt and warning of the program being in serious jeopardy if changes in policy are not made.

DeVos laid out the historical framework of the FSA program, showing its exponential growth in recent years:

It took 42 years—1965 until 2007—for the student loan balance to grow to 500 billion dollars. It took only six years for the loan balance to double—to one trillion dollars—in 2013. One-seventh the amount of time it took to get to 500 billion. And today, only five years later, FSA holds nearly 1.5 trillion dollars in outstanding loans. 1.5 trillion dollars is almost impossible to fathom. So, let me put it this way: 1.5 trillion dollars is more than 10 thousand dollars of someone else's student loan debt for each and every American taxpayer—145 million of them.

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