Wall Street has found another way to make money at the expense of our future: student loan debt. The amount of debt held by recent graduates increased an astonishing 20 percent from 2011 to 2013, reaching a total of more than $1.2 trillion. Meanwhile, big banks and financial institutions that profit from student loan debt are spending more than ever to influence political elections and to prevent policy solutions from being are enacted. Wall Street companies rake in an estimated $45 billion off higher education each year, with a significant portion derived from student loans.
One measure to deal with the student loan crises, proposed by Sen. Elizabeth Warren, would allow over 25 million students to refinance their loans at a better rate. Senator Warren’s bill has stalled, along with similar proposals, due to gridlock and obstructionism fueled by special interest spending. According to the Center for Responsive Politics, between 2008 and 2012 the amount of money Wall Street institutions funneled into Congress through political donations nearly doubled, from $55.9 million to over $108 million. That’s a direct result of the 2010 Citizens United Supreme Court decision, which lifted restrictions on corporate spending to influence elections.
The overwhelming increase in outside political spending is taking a toll on young Americans, as the weight of their debt limits their options post-graduation. Recent graduates are already faced with a daunting reality — with more than half of them currently unemployed — while the job market is flooded with people who have years of experience. If young Americans are fed up with special interest money robbing them of opportunity, their frustration can best be directed toward passing campaign finance reform… and supporting the Democracy for All Amendment.
This proposed amendment, which is being debated and voted on in the Senate this week, would allow Congress to regulate of the out-of-control spending in political elections. It currently has the support of 50 senators. While not sufficient to secure the 2/3 of the Senate needed for passage, this weeks’ vote on the Democracy for All Amendment is a historic step towards passing the 28th amendment, and a major milestone in the fight to for better federal policies regarding student debt.