Corey P. Paris

As legislators on either end of the age spectrum, we’ve seen the yin and yang of college debt. The experience of today’s recent graduates — including millennials and members of Gen Z, is dramatically different from that of their parents’ and grandparents’ generations. The rising rate of inflation in education costs is preventing too many recent grads from getting an economic toehold. In comparison, earlier generations, once they got a steady job post-graduation, paid off the cost of college relatively easily.

This dichotomy means Boomers could afford to stay in Connecticut, form businesses, buy houses and put down the kinds of roots that last. But their own kids and grandchildren cannot. Why?

Contrary to popular belief, it’s not about avocado toast, fancy cellphones or choosing to major in French literature. Instead, it’s about math — math that does not add up to a viable future for young earners.

Connecticut borrowers had the fifth-highest average student loan debt in the country, with our state borrowers holding $19.7 billion in student debt. Overwhelmingly, women and people of color not only take out student loans at a higher rate, they typically borrow more, owe more than they borrowed and are three times as likely to default on their student loans. Defaulting on student loans has severe consequences, including garnished wages, withheld tax refunds, acceleration of the loan's unpaid balance, damage to the borrower's credit rating and more.

Education is one of the metrics in the Consumer Price Index, which helps measure the effect of inflation relative to wage growth. Here’s where the math becomes a nightmare. In 1977, when Boomers were in college, the federal minimum wage was $2.30. But the effective buying power (per the CPI) of that wage was $5.90. In sharp contrast, today’s federal wage is $7.25, but because of inflation, that hourly rate has a current effective buying power of around $4.50.

Now factor in the rate at which the cost of education has soared. In 1977, you could go to a pretty good private school for about $20,000 for four years. If that cost had advanced only at the rate of other inflationary indicators, a four-year degree today would cost about $92,000. But it doesn’t. It costs a whopping $309, 000 on average.

In the United States, student loan debt ballooned by 144 percent from 2007 to 2020. Rising federal and private loan borrowing rates can be attributed in part to reduced state support for state financial aid programs, tuition and fee hikes, and poor accountability for low-performing institutions, among other factors.

Simply put: Today’s recent grads — who would help make our state younger, more vibrant and more economically attractive — are drowning in debt through no fault of their own.

That’s why we joined with Democratic colleagues Rep. Eleni Kavros DeGraw (D-17), Rep. Manny Sanchez (D-24) and Rep. Gary Turco (D-27) in proposing Senate Bill 250: An Act Concerning Student Loan Reimbursement for Connecticut Residents Who Graduated from a State University. This bill would create a student loan reimbursement program that would pay up to $5,000 of a participating borrower's loan each year they are in the program for up to four years, for a total of $20,000. Payments would be made directly to the Connecticut Higher Education Supplemental Loan Authority for loan forgiveness.

Borrowers must meet several eligibility requirements, including residing in Connecticut for five consecutive years, working for at least one year, being currently employed at the time of applying for the program, being under 35, completing 50 hours of volunteer service annually at a certified 501C-3 organization and being a graduate of a Connecticut-based public or private college or university or a trade/vocational school.

We urge every citizen of our state to read the proposed bill — at bit.ly/collegedebtbill — and ask your legislator to support this effort to provide relief for working professionals throughout our state. The vibrancy, economic stability and resilience of our communities depend on young people.

Christine Palm is the state representative for Chester, Deep River, Essex and Haddam, serves as Democratic leader of the Internship Committee and formed the Young Earners Prosperity Roundtable. Corey P. Paris is the state representative for the 145th district in Stamford, serves on the Appropriations, Environment and Education committees, and is the founding member of the House Democratic Legislative Young Earners Prosperity working group.

This op-ed appears in the CT Post