LA Councilwoman seeks system to help Angelenos navigate student loans
With mandatory student loan repayments set to resume in May for millions of Americans, Los Angeles City Councilwoman Monica Rodriguez introduced two motions on Friday aimed at helping young Angelenos become better financially literate and manage their student loan debt.
In his motions, Rodriguez noted that more than half of bachelor’s degree holders took out student loans and graduated with an average federal and private debt of $28,400. In the United States, a collective student debt of $1.75 trillion is owed, distributed among 46 million people.
“This system is often predatory and has a disproportionate impact on students of color who are most likely to use federal loans — burdening them with debt that impacts future financial gains,” Rodriguez said in the cover story. motions.
Rodriguez’s first motion is for the Los Angeles Department of Youth Development to offer courses and training in college aid and financial management, such as financial literacy and certification, savings and investment and other support for wealth creation.
“These trainings and courses could provide a better foundation for personal finance through training in budgeting skills and lessons in student borrowing practices,” the motion reads. “Creating a youth-centric knowledge base will serve as a useful repository of data that can better prepare young people for the benefits of personal finance.”
If passed by city council, the motion would direct the city’s administrative office to work with other city departments on a report proposing administrative operations, oversight and cost estimates to establish training and courses.
The second motion is to provide course graduates with an educational support allowance to help students with student-related debt.
Rodriguez also introduced a resolution on Friday that, if approved by city council, would indicate the city’s official support for expanding the civil service loan forgiveness program to include borrowers who previously did not qualify. .
“Student loan debt cuts off the ladder of economic mobility, making opportunities like owning a home or becoming financially independent increasingly difficult to obtain. Providing young Angelenos with financial literacy training, including college help, is key to helping them avoid the pitfalls of student loans,” said Councilwoman Monica Rodriguez. “The Biden administration has made efforts to expand student loan relief, but there are still gaps that need to be filled so that more young Angelenos can receive help.”