Solutions to help alleviate America’s crippling student debt crisis have taken a prime position amongst the Democratic candidates vying for the White House in 2020.
As they should because the numbers around the student loan crisis are disturbing. Just don’t expect everyone — from Democratic presidential hopefuls to those in the financial services industry — to agree on one ultimate solution that fixes things overnight (if at all).
“I think the solution is education and transparency,” SoFi CEO Anthony Noto told Yahoo Finance. When asked if bailouts of indebted students or free college were the answer to the crisis crippling the lives of many graduates, he said “I don’t think that is the solution.”
SoFi is primarily an online lender, offering everything from home mortgages to student loan refinancing. Noto said the company has recently gone into giving college loans to those straight out of high school. But along with that loan, SoFi serves up education on what a person would make based on their college major of choice. That is then weighed up against the debt the prospective student may be looking to incur.
“One of the reasons we have entered the in-school student loan market is to help them make the right decision at the beginning,” Noto explained. “College tuition has gone up meaningfully. A college education has been deemed a necessary factor in getting a great job and great income and nobody really has done the math on how much debt you can afford based on a career you are likely to choose.”