I think there are a few main issues with the arguments you're presenting here on the numbers. First off, $22,000 isn't nothing. According to this[1], the rate

I think there are a few main issues with the arguments you're presenting here on the numbers. First off, $22,000 isn't nothing. According to this[1], the rate for subsidized undergraduate Stafford loans climbed from 4.45% to 5.04%. Taking 4.5% over 25 and 10 years[2] gives monthly payments[3] of $122.28 and $228, respectively. That's definitely more than what my spouse and I pay each month for our phone bill (US, two smartphones, mid-tier data, major carrier). The total cost for 25 and 10 years at 4.5% comes to $36,685 and $27,361. Second, saying that amount is just a "new car or down payment" might be true but those are major events and expenditures. Put another way, if it is equivalent to a nice new car or a down payment, having student loans means they can't do one of those things. That's the cost — not just the money, but something that affects their life for years because they've had to delay some other important purchase. The ripple effect means they build equity later, save less for retirement, etc. Regardless of value or difficulty, the fact remains that these kids are indeed defaulting. TFA says that one out of every eight public school kids defaults on their loans, and there is no sign that rate it doing anything but increasing. As you say, this is a serious problem. 1: https://www.washingtonpost.com/news/grade-point/wp/2018/05/10/interest-rates-on-federal-student-loans-set-to-rise-for-the-second-year-in-a-row/?noredirect=on&utm_term=.f88611e9eba9 https://www.washingtonpost.com/news/grade-point/wp/2018/05/1... 2: https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsidized https://studentaid.ed.gov/sa/types/loans/subsidized-unsubsid... 3: https://www.bankrate.com/calculators/mortgages/loan-calculator.aspx https://www.bankrate.com/calculators/mortgages/loan-calculat...