All student debt in the US, visualized

And the US feared that they were falling behind. One of our greatest and most
glaring deficiencies is the… America newsreels like this one stoked anxieties that the country was wasting its intellectual talents. So in 1958, President Eisenhower signed a bill that let college students borrow up to $1,000 a year from the federal government. And ever since student loans have helped more and more people go to college. But as demand for higher education increased… …the cost did, too. So students took out bigger loans each year. In the early 1970s the average loan was about $1,000 a year in today’s dollars. Now it’s around $7,000 a
year. And when you factor in interest… … the average person with debt owes about $30,000 when they get their bachelor’s degree. If we combine all the student
debt Americans currently owe… … it adds up to 1.6 trillion dollars. This is a student debt crisis. But what if the government cancelled all of this debt. Sanders: Under the proposal that we introduced today, But 1.6 trillion dollars is a lot of debt to
cancel. So it’s worth asking: Who exactly would this help? The millennial generation was told that the only way they would get the good jobs available
is if they received a college education. … tens of thousands hundreds of thousands
and millions billions of dollars to our students and it is now crushing them. First let’s look at exactly who owes this money. Each of these bubbles represents about a thousand households. The bigger the bubble, the more they owe. So first let’s organize the debts by age. Okay we can clearly see that most of the
debt is owed by people in their 20s and
30s. That includes some of these really huge debts held by relatively few people. And since younger people haven’t had time to build wealth… It means the net worth of people with
student loans are on the lower end. So it seems like canceling student debt could overwhelmingly help younger people who don’t have money. But let’s dig a little deeper. Let’s try organizing the debts by education level. This way we can see what their student loans paid for. The biggest group are those with bachelor’s degrees. But the most debt is held by people who
either have a masters or beyond, like a
PhD or an MD. And they owe a lot of money. But when we organize these debts by household income… … we can see that many of these people also earn a lot of money. In fact, the majority of debt is held by
people here in the middle class… … and these people earn more money because they have an education. So let’s add our findings to the list: It looks like the
main beneficiaries are younger people… … who don’t have a lot of money yet. But
they have the degrees and jobs to give them a promising future. Bernie Sanders wants to cancel student debt for everyone, including people over here who earned hundreds of thousands of dollars a year. Elizabeth Warren wants to cancel
all debt for these bubbles… … households earning less than a hundred thousand dollars a year. Above a hundred thousand, dollars the loan forgiveness phases out. Until we reach $250,000. So these people
wouldn’t get any help. Here’s the hard thing about canceling student debt. All these people had the opportunity to go to college. And many of them do okay because of it. But here is everyone else — — the white dots who didn’t go to college,
many of whom never got the chance. Canceling the country student debt won’t
help them at all. But for Sanders and Warren this is part of a larger belief about what America should be Right now, we have an economy in the 21st century that basically says you’re gonna need some post high school training. A century
ago… when that was true about high school, we made high school free for everybody. People should not be punished for getting a higher education at a
competitive global economy. Seventy years ago, America was worried great students were being fenced out of college. People who could save the country. People who could help America get ahead. “They got the flag up now and you can see the stars and stripes.” Now this conversation is about who is allowed to build a stable future. And the great debts we pay for a desperate chance at that dream.

Author Since: Mar 11, 2019

  1. They’re all victims, but democrats view on debt is beyond idiotic. Where does the money come from to pay it? Tax the rich people? No, because they just leave lol. It’s simple, look at California and ask if you want that on a national scale. They are the highest in debt, unemployment, crime, drug use, welfare, and regulations. Why do people vote for slavery? Democrats promote slavery, like they have from their conception. Wake up!

  2. Educated citizens is an investment for the country, so the idea that students should pay for it is kind of ridiculous, and it's bizarre that they have gotten away with it for as long as they have. No other country reaps all the benefit from their citizens without also putting in the investment.

  3. What this video doesnt show is the people with student loans that are considered middle class and lower middle class. Those people are struggling because so much of their income goes toward student loans and theier lesser counter parts who make less are doing much better because no loans, no degree but they are able to qualify for programs and assistance to help. Lower middle class with student loans are stuck.

  4. Housing is truly the issue that nobody wants to talk about. The government wouldn't have to give out so many loans if they sourced companies to build houses for students and reserved land in every city specifically for education housing only. But then we have to stop allowing companies to hoard land in populated areas so…. yeah.

  5. I'd also add that both of those Candidates are proposing free college as well which would make it possible for all the people in white who choose not to go to school (mostly for the cost) to afford higher education and join those who have already graduated.

  6. Government intervention has increased the cost. Leave it to the state to intervene and see how the cost goes up and up.

  7. I think that the solution to this problem is to only allow people to obtain debt that can easily pay it off. I say we allow only people going into stem fields with guaranteed employment to borrow money for college. This solves the student debt problem because student debt will only be with those who can pay it off.

  8. What do you mean it won’t help those people who didn’t go to college? It gives them an opportunity to go to school and get an education in whatever they want. You didn’t even explain how it doesn’t help them either

  9. People that took out student loans made the grown-up decision to borrow money that was not theirs because they decided that the education they would get from it would benefit them. Now when the time comes to pay back the money they agreed to pay back when they took out the loan don't want to hold up their end of the bargain. They have the education but now they don't want to pay for it? Hardly seems very grown-up to me.

  10. Here's the thing, US. Did you notice almost all of your top universities includes Chinese national students? How are these students able to afford it? Well, some of them are rich enough and they think that US University diploma is worth spending in. However, it's not only rich Chinese students studies in US, talented poor students are able to study there too. How? Through scholarship and grants, which many guaranteed by their state.
    Now, do you still think that college studies shouldn't be free or affordable for US citizens studying in their own country?

  11. Just a sidenote…
    – If you increased the tax for every millonaire with 10,000$ per year, which would be like rising the tax with 50$ for an average citizen per month – you could pay of this debt within 10 years…

    – Otherwise if you didnt spend 600 fkn billion on the military every year, to ”help” (abuse) countries that dont want you there and contribute to terroist organisations, like those in Afghanistan, you could pay of the debt caused by 50 years of gathering of debt, in one of the biggest industries, within a 2 year period…

    Kindest regards – A swede.

    Ps: before you say people wont work if the millonaires tax woukd be raised by the equvilent of 50$… then ill ask you, why does Sweden, a country with significantly higher tax, have almost twice as many billionaires as the US? Yeah… exactly.

  12. It's sad that something normal in Europe is still a matter of discuss in US. From Poland I keep my fingers crossed for you guys.

  13. Every year, colleges are adding new "prerequisites" to make it more impossible to achieve a 2-4 yr degree in that time period. Add another 1-2 yrs to your degree to complete and pay for. Particularly if you went to a technical/vocational high school, and didn't take courses required in any college degree, for free while you were in high school. It's smart that kids are dual-enrolled in high school (in Florida, at least) and college, receiving their high school diploma and college degree/credit courses for free. My nanason (grandson) will have at least his associate's degree, possibly his bachelor's (or most of it), by the time he graduates high school. While I, his Nana, (a 59 yr old Veteran) am struggling with at least $40K I never should of had to begin with. I did not have the GI Bill. The VEAP program was so wrong, and ripped off the Vet, that I'm surprised the Govt didn't keep it. And today's Vets have 10 years to use their GI Bill, or they lose it!!! Ridiculous!! It may take 10 years to get their head straight after being in a war. After WWII, Vets were sent to various technical schools and universities, including Ivy League Schools. These Vets became Scientists, Engineers, Architects… all to advance and improve our country, as well as their lives. They didn't pay for it, and there was no time limit to enroll or finish. My father, also a Vet, went back to school, paid for by his GI Bill, while I was in high school.
    STOP spending so much on the Military, which does NOT benefit the Vets as much as it benefits the weapons (Jets, ships, …) manufacturers. Invest in the people of this country instead with a free education. If you really listen to Bernie Sanders, and in particular, Elizabeth Warren, it improves the economy!

  14. I’m going to college later in another country my home country is to expensive(america) I’ll go to maybe france or England for better college costs

  15. I am 41. No plan I have seen will help me. I have had to stay poor just to survive debt. Poor health, recession, and being pushed into a profession wherein I am limited has contributed to needing help buy not the target demo.

  16. Hands down the best visualisation of statistics i have ever seen. Thank you Vox and especially your graphics department! 😀

  17. Me: 130k Student Loan Debt. FOR AN ASSOCIATES DEGREE! Because the for profit school commited fraud and the loan servicer (Navient) grossly mishandled my loans. Even while paying on them..
    Government Sue's Navient = Wins.
    Restitution for Students = 0

  18. Who pays for this cancellation of debt? Most of these debts have already been converted to MBS and are held by Investors. I'm sure they won't let their money go to drain. So the next option is for the government to pay these loans, which means the people who don't have Student debt or who have paid student debt will pay for it.

    Here is my prediction: In the next 30-50 years as automation in jobs become more prevalent the future jobs will be more research-based. That is there will be more jobs which pay more today. Somewhere between today and 50 years from now, education will become free in most developed economies, for which there will be considerable short term economic pain "Remember, nothing is FREE.. YET" As people study more, these jobs that pay well today will pay less as there will be more than enough people with similar educational background. The only way people can truly achieve high paying jobs in which case will be really brilliant ones or those with ancestral wealth "Yes! Nepotism will rule even then".

    So what does free education create? It creates High skilled, low paying jobs.

  19. The problem is making College free, will make happen what free high school degrees are. Worthless, of course people will argue college degrees are worthless. My counter is if you go into a high paying field, or a field that is in high demand they are not.

  20. I'm sorry but everyone is free to decide what school to attend, how much it's gonna cost and is it worth it… also are you going to be able to live and pay for this in the next decades. So many people wanted education at any cost that colleges felt free to charge you an obsene amounts. Current hugh schoolars should really find other ways to get a career.

  21. There’s a way simpler way in doing this, one) become a revolutionary, two) revolt against the country, three) make a similar country with similar laws and right as the old one, and four) just get rid of all the current country’s problems

  22. In England and Wales university costs £9,000 a year for a three year bachelors. You only start paying it back if you earn over £25,000 (US$31,000) and if you ever earn less after you start paying it then it Re freezes.

    The current system says that if you have any debt left over after 30 years it’s wiped. Scotland have free university which works for them, personally I’m okay with paying it back as it’s an investment for my future but the way the US system works it’s absolutely ridiculous.

  23. Australia Bachelor of education
    Student loan 4years $29,000aud
    No interest, pay back only when you earn over $45,000 a year
    First year teacher pay $72,000

    Wife had lung surgery Medicare $0 paid.

  24. It's U.S.'s cultural problem not recognizing education, including higher education and vocational training, as a fundamental human right in a civilized society. The fact that other large economies like those in Europe cover their constituents' education (be it the trade or college pathway) shows U.S. got the fundamentals wrong.

  25. Wait, are there people in America who earns less than 10.000 dollars a year? That is like half of what someone on welfare gets in Denmark..

  26. it wouldnt help the people who didnt go to college, but what will? weird non sequitur. itll help millions of people in the future who wouldnt have had the opportunity but now will

  27. I am confused about the white dots at the end. Are those other debts of people who did not go to college? It was quite unclear to me.

  28. So you want me to feel bad for people that choose to go to school and acquire an amount debt that is less than the average car loan. Well I don't. Shut up and pay for what you signed up for

  29. Free higher education paid for by taxing the workers who did not enjoy it seems a bit unfair. Benefits could be extended to all kinds of vocational training, it would reduce the number of f-ckees. Or alter the taxation system to make only successful graduates pay for all.

  30. I don't understand why it's always framed as negative that Bernie wants to cancel all debt and offer free college to all Americans. I don't think we need to be taxing the rich more and the cut them out on the benefits. That's just not the sort of country I want; I want free college and universal healthcare for Americans full stop

  31. Im a tax payer, and don’t have a problem with it
    It’s good to pay for young people to get education. It’s a very good investment for all of us.
    I m a European. We think that a educated population is a benefit for the society
    We pay you study

  32. Son: Dad why do I need to apply for student loan?
    Dad: So you can go to college
    Son: Why do I need to go to college?
    Dad: So you can get a good job
    Son: Why do I need to get a good job?
    Dad: So you can pay off your student loan

  33. Maybe, just maybe people shouldn’t go to college. We all know a huge majority of people go to college to party and for the experience. If you can’t afford the loan and know that the job you will apply for wouldn’t pay enough to pay it off, don’t go to college. Or go to a community college, or trade school, or some other on the job training.

  34. You could have just explained that it is about the fundamental argument that higher education should be taxpayer funded just as basic education is, because it is becoming increasingly necessary in a modern economy. They want to make higher education tuition-free, so the fair thing to do for those that have already taken out loans, and have been working for years to pay them off, is to forgive their debt. Why force people to continue to pay debts that no one else will have to pay from that point on? Especially when those debts are crippling for those that have to deal with them.

  35. Should credit card debt be forgiven also? Maybe even pay for my car….why not my house. Here is a concept….if you don't want to pay for college then don't go to college.

  36. CalPers has a trillion dollar pension liability. Do a video on how unionized public sector workers are bleeding the state dry.

  37. Or you could live in West Virginia. Where you get about 1/3 of your college paid for in state, as long as you have like a 4.0 and maintain a 3.4

  38. Sold my soul to the Navy to finish my BA, while already in debt $20k. Got my degree and also got a fun diagnosis for PTSD. Lost my diploma in a move and have to pay $75 for new one, plus shipping. MERICA!!!

  39. 😢😢😢😢😢I feel so bad for people who pulled student loans. Actually I do not. I have pulled a student loan and I paid it off. I did not expect to make a lot of money once I finished school but I lived and continue to live within my means.

  40. I feel like the statement that cancelling the debt would have no impact on those other people is false, as now the people with debt would have more money to spend monthly. I'm sure that would positively impact at least a portion of those who didn't go to college.

  41. If you still don’t realize this, let me tell you: America is run by Corporations. It’s riddled with old money. Nobody cares about the middle and lower classes.

  42. Can these politicians also pay off my mortgage since I don't have student loan debt? Banks are also ripping us off with interest. I'll vote for them if they pay off my mortgage!

  43. Go behind-the-scenes on how producer Alvin Chang created the data viz for this video with our Video Lab Extra:

  44. Let's stop pretending we don't know what the cause is to this debt crisis🙄Will financial aid ever cover the full cost of housing? NO, PROBABLY NEVER😒then why bother applying for it? 🧐Look, let's get real here….the real reason why everyone has so much debt is because of not covering housing cost,,,,,which means students must work a part time job to make ends meet,,meaning,,🙄,it forces them to only be able to attend school part-time…🤨 everyone knows time⏳is money 💰….so part timers attend longer,,the life of the loan = higher debts…..😐Time for this nonsense to STOP!🖐️ Wanna fix the problem,,then provide more housing….😐and don't make the excuse that there isn't anywhere to build on campus housing,,,why not get rid of all of those football fields taking up space and move that somewhere else…..🙄that doesn't have to be on campus grounds …..STOP MAKING EXCUSES!🤥

  45. The government should go after Colleges and Universities, and cap on how much they charge students. If they do that, then people won't have to borrow as much money to get a higher education.

  46. Usually your videos are better than this. First of all, 23,000 a year in household income is not "middle class." Second of all, what is the point of this video? It goes nowhere, does no analysis, and is honestly below your usual standards

  47. The white dots. The people who didn't go to college. Don't count them out as not contributing to the problem. Many of them can be thought of as contributors who helped bring on the 2008 housing and financial crisis which led to long term unemployment for many of us forced into student loan debt.

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