"The Congressional Research Service estimates that the federal student loan portfolio now exceeds $1.6 trillion." - Graphics Editor / Alexander Cruz
According to the Bureau of Labor Statistics, the United States economy added 22,000 jobs in August, following a downward trend that has raised red flags about the direction of the economy.
The newest numbers have again sparked worries about a possible recession, as underlying economic indicators like discretionary spending lessen, and student loan debts skyrocket. The Congressional Research Service estimates that the federal student loan portfolio now exceeds $1.6 trillion.
The cost of living crisis has only heightened as tariffs imposed by the Trump administration also degrade the value of the dollar, and contribute to a loss of 12,000 manufacturing jobs.
The issue of tariffs also hit Rowan University. On March 12, The Whit reported that tuition would increase no more than 4.5 percent for undergraduates while fees would increase by 6.7 percent at a Board of Trustees meeting. Rowan president Ali Houshmand defended the tuition raise as what’s in the “best interest of the students.” He also cited broader economic impacts, such as inflation and tariffs, for making it harder to run the university and continuing to provide support for students.
Students who attended the meeting decried the increases, citing how university students are already struggling to afford not only tuition, but also costs associated with attending university, like books, parking passes, and travel.
Additionally, the Division of Information Resources & Technology (IRT) released a report, which is now archived, that tariffs may “lead to increased prices and longer order processing times on a wide variety of products.”
These numbers paint a bad look for the economy as students find themselves in a bind, as students who go to class full-time may find it difficult to work a job at all, let alone 40 hours a week. For example, in the state of New Jersey, the minimum wage is $15.49 per hour. MIT estimates that a livable wage, that is, a wage that allows a person to support themselves or their family, should be around $26.20 an hour for a single person with no kids. That wage only increases the more dependents one has.
Take, for example, my own Cost of Attendance Estimate (COE) from Rowan University. The COE is an estimate of all the expenses a student may encounter while attending the university. It’s not a bill but an estimate that represents the complete cost of just one academic year (9 months).
For the 2025-2026 academic year, my estimate was around $41,000. Working 40 hours a week at a minimum wage job paying $15.49 would average me $619.60 before taxes. I would actually need to work an additional 10 hours a week, for every week of the year, to afford the COE for just 9 months of schooling.
The Big Beautiful Bill Act, passed by Congress on July 4, overhauls the student loan system. While it creates new Income Driven Repayment plans that eliminate some interest and offer lower payments depending on the repayment plan chosen, the bill does not tackle the root cause of the student loan debt crisis. Everything is more expensive, and wages remain stagnant, all while social assistance programs have also been cut.
The legislation tightens borrowing limits for students pursuing law and medical degrees, actually capping some loans for graduate students and parents who want to take out PLUS loans to help cover additional costs for their students.
Further, the bill completely uproots the Saving on a Valuable Education (SAVE) plan, implemented by the Biden Administration to lower monthly costs for students and expedite loan forgiveness. Many who signed onto the program have been stuck in legal limbo as a court injunction stopped the program’s enforcement and interest from accruing.
The Trump Administration also began garnishing student wages of students in default, with officials saying, “…taxpayers shouldn’t be on the hook when people don’t repay their education debt.”
When discussing the problem of student debt, we must remember that there’s a bigger picture. Current economic data support the idea that our economy is slowing down, employers are hiring less, and Americans, including students, have less discretionary income to spend.
The current administration has also impounded funds from higher education, cutting research funds, and forcing states to pick up the tab and universities to raise tuition and potentially impose layoffs. The Trump Administration has cited Diversity, Equity, and Inclusion (DEI) programs as the reason for some cuts, though those cuts may be illegal.
Further, a Skinny Budget released by the White House shows a $163 billion cut in non-defense discretionary funding. Some programs cut include Federal Work Study ($980 billion), Migrant Education and Special Programs for Migrant Students ($428 billion), Economic Development Administration (EDA) and Minority Business Development Agency (MBDA) ($624 billion), and the Complex Crisis Fund ($55 billion).
The reasons for these cuts often stem from preventing the spread of “radical left-wing ideology” and “woke policies.” These claims by the White House support the idea that these cuts are political and not for the financial well-being of students or taxpayers. Attacks on DEI programs have only heightened the student debt crisis by further inflating tuition costs.
As students, we aren’t alone, and there is help. We must attend trustee meetings, get involved with on-campus organizations like Student Government, activist groups that give students a platform, and even groups like Students for Justice in Palestine, which support working-class individuals. While one cannot budget themselves out of a bad economy, we aren’t helpless.
Rowan University has a food pantry on campus, as well as other financial resources available. The wellness center also has resources for mental health and emotional support, because no matter who you are, you deserve to be here.
DEI cuts and attacks on vulnerable groups may feel like an insurmountable challenge in the face of systemic barriers, but our voices will not be silent.
Students, and more broadly Americans, face a devastating cost-of-living crisis. With the Trump Administration’s reckless actions and disregard for student and worker wellbeing, human and civil rights, and an increasingly more hostile stance towards higher education, now more than ever are our voices not only needed, but required.
For comments/questions about this story, DM us on Instagram @thewhitatrowan or email [email protected]