The title The Debt Trap relates to the multimillion-dollar crisis faced by the U.S. Department of Education. It is a well-researched and thought-provoking book which reveals the dark secrets of the student loan program for higher studies.
- 272 pages
- Publisher: Simon & Schuster
- Language: English
- ISBN: 978-1-5011-9944-8
This book gives a clear picture of the vicious trap students fall into when they borrow money for higher education. Not only does The Debt Trap show the increasing bad debt in banks but also different perspectives of people from diverse backgrounds.
The author considers the situation to be the biggest consumer debt bubble of the 21st century, and he believes it can land the U.S. economy in crisis. While student loan programs have made higher education accessible to all irrespective of their economic backgrounds, it has contributed to economic inequality.
Josh Mitchell clearly indicates how banks, educational institutions, and governments are in a hurry to fill their pockets. They are approving loans at exorbitant rates without having a proper backup mechanism of its timely recovery.
The author also talks about those who have earned billions through student loan programs and their take on debt-ridden students and the staggering economy.
Even rising tuition fees have not stopped students from taking out loans from banks. The author discusses whether it is worth it to get an education if it requires paying such a heavy price. He says it’s best to avoid debts and excess budget for anything that is not essential.
He presents the corporate point of view, the banking personnel view, the students’ take, and the government’s perspective. He doesn’t blame a particular entity for this crisis, but he suggests ways to fix this crisis.
Mitchell suggests a two-way approach. First, deal with those who have already borrowed money. Second, take steps to prevent another wave of defaulters.
Some of the steps suggested by the author can be to forgive and forget interest charged on student loans, running community colleges free of cost, and transferring some debt using loan management software to graduate schools. Other options are to reward the apprenticeship program and stop subsidization of graduate schools by the government.
Mitchell’s writing is clear, thoughtful, and well organized. The author includes an impressive list of sources from diverse areas. He writes in a respectful, engaging manner covering every possible solution to the problem, as debt truly is a trap for many Americans.
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