State spending remains about $7 billion below its 2008 level, according to the Center on Budget and Policy Priorities. For decades, states have ratcheted down college funding in bad times, without replacing it when the economy comes back. As we saw in the Great Recession, private household debt and state budget cuts both reverberated throughout the economy, exacerbating wage cuts and job losses. Without a contingency plan for the looming mix of recession, debt increases and state budget cuts, we can’t solve the student debt crisis. James Kvaal, president of the Institute for College Access & Success, was the deputy domestic policy adviser to President Barack Obama.

Source: New York Times October 23, 2019 09:56 UTC