Posted on May 03, 2011 in News
By Kristy Wagner

Kristy Wagner

Alex Steed speaks about student loan debt at Hope.Gate.Way in Portland April 27.

The Portland League of Young Voters held a community forum Wednesday focusing on the rising problem of high student debt, Maine and throughout the United States. The League of Young Voters is an organization that seeks to empower young people to take an active part in the democratic process.

Maine college graduates have the third highest level of student loan debt in the country, topped only by Mississippi, which holds the number two spot. According to the Project on Student Debt, the average amount of debt for Mainers graduating from public four year institutions is $29,143.

At USM, Commencement is fast approaching, and many seniors are about to begin the process of paying back their student loans.

Students who have not previously taken time off from school are given a a six month grace period after graduation for most federal and private loans; but once that is used up principal balances keep racking up interest leaving many with more to pay back than anticipated.

People of all ages with student loan debt gathered Wednesday at the Hope.Gate.Way, a United Methodist community space in Portland, to tell their personal stories and discuss possible solutions to the problem. Attendees also watched a documentary on student loan debt entitled “Default,” which focused on several students whose student loans had spiraled out of control with high interest rates.

The documentary explained how people saddled with unmanageable balances caused by snowballing interest rates can face wage garnishments, seizing of tax refunds, revoking one’s professional license, taking away of federal benefits and lawsuits.

According to Alex Steed, USM graduate and steering committee member for the League of Young Voters,  Maine’s high student loan debt is compounded by low graduation rates and a stagnant job market. “We’re in the bottom third ranking for students graduating with a college degree and we’re one of the lowest wage earning states,” said Steed.

“There’s been a lot of discussion on this issue in Maine,”said USM Professor of philosophy George Caffentzis. Caffentzis said he has been researching student debt for several years. Caffentzis said his research is meant to enlighten people about the connection between debt, education and economic policy.

According to an April 11 New York Times article student loan debt in America is recently surpassed credit card debt.

Caffentzis said that debt has become an increasingly alarming situation because higher education in America has become a necessity in the world of working professionals.

“There is a sort of debt bondage that I am afraid many students enter into when they finish university,” said Caffentzis. “What I see is that if we continue this path we’re on, education and even public universities like USM will be driven basically by tuition fees and it becomes a pure commodity.  Increasingly we will have a situation where instead of education being available to the broad mass of people, it will be available only for the privileged.”