Pub. 13 2016 Issue 4

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 12 L A W Y E R A D V E R T I S E M E N T LEGAL EXPERTISE YOU CAN BANK ON Your stockholders demand growth. Your customers demand strength. You need a law firm with the banking and financial experience that can help you achieve these goals. Year after year, the attorneys at Miller Stratvert are continually recognized by their peers for their banking expertise in The Best Lawyers in America . To find out how you can put one on your team, we invite you to call us for a consultation. Gordon S. Little James J. Widland Kirk Allen Tyler Denning Billy Jimenez Dylan O’Reilly ALBUQUERQUE 505.842.1950 ~ LAS CRUCES 575.523.2481 FARMINGTON 505.326.4521 ~ SANTA FE 505.989.9614 www.mstlaw.com 2017 BANKING & FINANCE “LAWYERS OF THE YEAR” er countries for ways to better deal with this crisis. In Sweden, for example, 70 percent of Swedish students take out loans for college, primarily for housing. In comparison, 70 percent of college stu- dents also in the U.S. borrow for college. The average student loan debt for a student who earns his or her bachelor’s degree in Sweden is around $20,000, while the average debt for American students who complete their undergraduate degrees is around $30,000. So, it is relatively comparable. Despite the borrowing in Sweden, there is not a student loan debt crisis due to the fact that payments are spread out over a 25 year period. The payments start out low and then gradually rise over time. In the United States, the payment pe- riod is 10 years, forcing graduates to pay off loans when they have less financial stability. In England, students have 30 years to pay off their loans and, in Germany, they have 20. Australia also lessens the burden on college graduates by allowing themto not pay off stu- dent loan debt until they earn at least $40,000. Above the $40,000 mark, students pay off 4 percent of their income until the debt is paid off. Payments increase and decrease automatically based on earnings. There is a consensus among economists that student loan debt is overwhelmingly negative for the economy as a whole. Even college students who are able to earn relatively high-paying jobs have less confidence as consumers than ever before if they have to continu- ally pay off debts from their education. And the problem is further exacerbated when looking at graduates who don’t immediately find relatively high-paying jobs or, worse, students who accrued debt while not earning their degrees. It also decreases the likelihood of savingmoney in your 20s and 30s, thus leading to other issues such as credit card debt. Simply put, it profoundly affects the quality of life for many people. There are numerous issues that are of great concern to Ameri- cans, as even a cursory knowledge of the current political climate indicates. However, student loan debt is an issue that acutely affects many Americans on an everyday basis. It is not an abstract issue that is largely discussed as a political talking point, but one that is felt directly by many. That’s why it is so important that people at- tempt to force politicians to act in a way that will lessen this burden. Higher education has always been viewed as a way to better one’s lot in life, and rightfully so. That should continue to be empha- sized to young people, because not only does education increase the chances of success, but it increases an individual’s awareness of the world at large. There should not be enormous roadblocks to some- thing that is so inherently positive and valuable. With that said, it is important to emphasize that, even in the cur- rent climate of rising student loan debt, the positives of earning a college degree far outweigh the negatives of possible student loan debt. Statistically, college graduates, even those paying off student loans, are far more likely to have long-term financial stability and home ownership than non-college graduates. But, when attempt- ing to pay off loans, that reality can be difficult to see. Most Ameri- cans likely can agree that there should not be deterrents to earning a higher level of education. It should be universally agreed upon that higher education will frequently lead to positive outcomes. That’s why it is important that politicians and, ultimately, everyday Americans work to fix this worsening problem. The ultimate source of change starts with everyday citizens affecting it and that’s what needs to occur in the case of student loan debt. n n The Student Loan Debt Crisis  continued from page 11