KANSAS — Skyrocketing student loan debt in recent years has left college graduates saddled with huge financial burdens, convinced other students to drop out and scared some young people away from college completely. Researchers in Kansas University’s School of Social Welfare says they have a better idea. William Elliott and Terri Friedline say that instead of saddling students with hefty student loans, give them a smaller amount 18 years sooner. They propose government-created savings accounts provided to every child at birth. The idea has been proposed twice in Congress — a $500 savings account for every child at birth, with more contributions and matching funds available for children in lower-income families. Elliott’s research has suggested that children with college-designated savings of at least $1 but less than $500 are more than four times as likely to graduate from college. He says it would also encourage more savings. He says the its total cost to the federal government would be about $3.25 billion. He notes that presently, the federal government spends about $65 billion each year on student loans.
Updated 6/13/13 @ 10:45 pm
