In 1957 the soviet union launched the sputnik satellite into orbit they beat America into space, and the U.S. feared that they were falling behind. One of our most significant and most glaring deficiencies, the failure of the U.S. in the country, was not given high priority to scientific education at the time. So in return, they cut all budgets from the creative arts program. American newsreels stoked anxieties that the country was wasting its intellectual talents. More than 200,000 each year of high school graduates had a higher requirement of education. So in 1958, President Eisenhower signed a bill that let college students borrow up to $1000 a year from the federal government, and ever since student loans have helped, more and more people go to college, but as demand for higher education increased the cost did too. In that result, students took out bigger loans each year. In the early 1970s, the average investment was about $1000 a year in today's dollars. Now it's around $7000 a year. When you factor in the interest the average person with debt owes about $30,000 when they get their bachelor's degree if we combine all the student debt Americans currently owe, It adds up to about 1.6 billion dollars. This is the student debt crisis. What if the government canceled all of this? We are going to roll back student loan debt for about 95% of students who have liability. But 1.6 trillion dollars is a lot of debt to cancel, so it's worth asking who exactly would this help?
The millennial generation was told that the only way they would get good jobs available is if they received a college education. Tens of hundreds of thousands and millions of billions of dollars to our students and it and it is now crushing them. First, let's look precisely at who owes this money? Most people in debt are owed in their 20s and 30s that includes some of these vast debts held by relatively few people, and since younger people haven't had time to build wealth, it means the net worth of people with student loans are on the lower end. It seems like canceling student debt could overwhelmingly help younger people who don't have money. However, let's take a little deeper if we organize the indebtedness at the education level. We can see that their student loans paid for the most significant group are those with bachelor's degrees. Still, the most debt is held by people who either have a master's or beyond like a Ph.D. or an M.D., and they owe a lot of money. Still, when organizing these debts by the household income, we can see that many of these people also earn a lot of money. The majority of debt is held by people here in the middle class. These people make more money because they have an education. It looks like the primary beneficiaries are younger people who don't have a lot of money yet. Still, they have degrees in jobs to give them a promising future.
Bernie Sanders wants to cancel student debt for everyone, including for people who earn more than hundreds and thousands of dollars. Elizabeth Warren wants to cancel all liability for people who make less than a hundred thousand dollars a year. Above a hundred thousand dollars the loan forgiveness phases until we reach $250,000. These people couldn't get any help. Here's the hard thing about canceling student debt: all these people had the opportunity to go to college, and many of them are okay because of it. However, we can't say the same thing about people who attend college and many who didn't even have the chance. Canceling the country student debt won't help them at all, but for Sanders and Warren, this is part of a tremendous belief about what America should be. Right now, we have an economy in the 21st century that says you're going to need some post-high school training a century ago when that was true about high school. We made high school free for everybody. People should not be punished for getting higher education at a competitive goal. Seven years ago, America was worried great students were being fenced out of college. People who could save the country, people who could help America get ahead. Now this conversation is about who is allowed to build a stable future and the enormous debts we pay for a desperate chance at that dream