Meet the average college graduate: they have a degree, but are positioned in a job that doesn’t require one, with seemingly insurmountable debt — more than $35,051 in loans, according to MarketWatch.

Even in a recovering economy, college costs are on a steady incline and wages remain stagnant, according to U.S. News. Student debt hit $1.2 trillion earlier this year, according to USA Today, marking an 84-percent jump since 2008.

Although President Barack Obama’s approval of debt-alleviating measures in late October marks progress, there’s more to be done. Student debt is an affordability issue that only wide-scale, comprehensive measures have the power to curb.

For years, the Obama administration has appropriately made student debt reduction a top priority. The latest proposals require colleges to provide students with options for how excess financial aid will be received, giving students more financial protections in July 2017. They will also allow college graduates who used loans to finance their education the ability to cap their monthly payments at 10 percent of their discretionary earnings.

Despite these steps forward, student debt is decelerating millions of young careers and slowing the economy’s overall growth. For these reasons, comprehensive student debt initiatives need to be at the forefront of the next president’s agenda.

“[Student debt] can slow the overall economy because the funds that students are using to pay back their student loan debts are funds that could be used to buy goods and services,” said Don Dutkowsky, a professor of economics in the Maxwell School of Citizenship and Public Affairs. “Paying back debt is financially sensible, but it doesn’t add anything in terms of stimulating production, employment and expanding the economy.”

Research from a 2014 Federal Reserve Bank of New York report shows that student debt is indeed stunting economic growth. In 2008, about 30 percent of those aged 27-30 with student loans had mortgages, but that number plummeted to 22 percent by 2013. That same year just 31.4 percent of 25-year-olds with student loans also had an auto loan, marking a sharp decline from 37.6 percent in 2008.

Clearly, student debt is a pervasive problem that requires large governmental action. But until more legislation to combat it is made and actually implemented, there are many opportunities for colleges and students to amp up their financial game.

Because most high schools are doing a subpar job at teaching basic finance skills, colleges need more financial literacy offerings. The problem is that most of them — Syracuse University being a rare exception — are lagging in educating young adults on basic money skills, considering just 39 percent of four-year college students budget in any form, according to MarketWatch.

The SU campaigns include social media contests, peer-to-peer mentoring and regular panels designed to increase financial awareness and engagement. These are free financial offerings that students should not ignore throughout their time as matriculated students.

Susan Call, the associate director of employer relations for SU’s Career Services, said she believes students can build strong financial habits on their own, too. She said it’s proven that using cash whenever possible is an easy way to save money and that platforms like Mint — an easy-to-use budgeting application — and Glassdoor — a jobs marketplace — can be instrumental in helping students save money and position themselves for success.

Put simply, more governmental action is needed to minimize the mounting student debt facing college graduates. But until policy makers in Washington, D.C. do more, universities and students share the responsibility to place financial issues at the forefront.

Matthew Gutierrez is a freshman journalism and entrepreneurial management dual major. His column appears weekly. He can be reached atmguti100@syr.edu and followed on Twitter @MatthewGut21.

Published on November 9, 2015 at 12:14 am