On paper, the federal government is set to spend more on student loans than on federal programs like food stamps and unemployment benefits combined, and for the first time since the Great Recession, the bulk of that money is going to private schools.
The Federal Reserve is set on hiking interest rates to spur spending, which could lead to higher tuition and fees for students and their families, especially as enrollment has remained steady.
But the administration has proposed a $3 billion “debt relief” program for students, which would allow parents to borrow up to $1,000 more each year from their retirement accounts.
The administration is also considering new rules to prevent predatory lenders from making bad loans to students and to allow borrowers to defer the fees they owe on student loan loans.
The federal government has also proposed a host of new rules for the financial services industry to prevent fraud and to protect borrowers, many of whom are students.
But there are growing concerns about the financial security of borrowers and colleges and universities, and a growing number of experts say that the proposed changes will not solve the problem.
Among them is Michael P. Miller, who heads the Financial Consumer Agency, a consumer advocacy group.
“I’m very concerned that the administration is proposing a big increase in interest rates on loans that many Americans can’t afford,” Mr. Miller said.
“This will create more problems, and there are going to be more problems.”
One of the most immediate risks is that college graduates will find it increasingly difficult to find a job.
The average unemployment rate for college graduates is 7.3 percent, and nearly a quarter of students who enrolled in four-year colleges in 2016 are out of work.
A recent survey by the Center for College Affordability and Productivity found that about half of all colleges nationwide have no openings at all for students.
If colleges and institutions can’t meet the needs of graduates, they will become more vulnerable to financial distress, and students will become even more dependent on them, said Chris Karpowitz, a professor at the University of Michigan Law School.
At a time when we’ve got such a large number of people who are struggling to make ends meet, you have to ask yourself, what’s the long-term benefit of this?
What’s the financial benefit?
How does this add to the deficit?
And as we see more and more graduates coming back to the United States, they’ll be looking for jobs, and the students will be working to pay off their debt, said Brian H. Johnson, a former student loan counselor at the U.S. Consumer Financial Protection Bureau and now chief executive of a private company that provides loans to borrowers.
College students are a generation of Americans who’ve had a tough time getting ahead.
They have a lot of financial problems, they’re dealing with a lot, they have families, they don’t have the financial stability to go to school, so they’re going to end up in a worse position.
And we’ve really let that happen because of this administration.
There are several big obstacles to college graduates becoming financially secure.
There are the federal loans that are already in the hands of a lot more people than students.
There’s the higher cost of paying off student loans, which makes it more difficult to borrow money in the first place.
And there’s the fact that there’s no federal guarantee that if you default on a student loan you can’t get your money back.
But there’s another big problem.
We don’t know what’s going to happen to all these young people, and what we do know is that they have a very hard time finding jobs.
And that’s going, I think, to hurt their overall ability to pay down their debt.
Students are in a financial bind, because they’re struggling to get by.
They can’t find work and they can’t repay their loans.
The president wants to make sure that people don’t go into default on their student loans.
But it’s not clear that this plan will help borrowers, because there’s so much uncertainty.
More broadly, the proposals are just a start.
The White House and Congress have until September 30 to come up with an economic stimulus package, but even that might not be enough to address the growing student loan crisis.
It’s been a long time coming, but we have the chance now to fix it, said Andrew Miller, a senior adviser at the Center on Budget and Policy Priorities, which has advocated for the president’s debt relief program.
So we need to move in the right direction.
We need to get back to work on job creation, education, infrastructure and the other things that are really going to help students, said Ms. Miller.
“It’s going be very difficult, but I think it’s going have to happen.”
The president has proposed three major tax credits for college students, including a tax credit for tuition and fee waivers for students at private colleges.
But they have been controversial.
One idea is to allow