Cor
Resolution
WHEREAS, National student loan debt has tripled since 2005 and is now at $1.2 trillion according to the Federal Reserve Bank of New York; and
WHEREAS, Student loan debt is quickly becoming a crushing burden for many Americans; and
WHEREAS, According to the "Chicago Tribune" 69 percent of recent college graduates nationwide have student loan debt and left school with an average of $28,950 in loans; and
WHEREAS, Illinois ranks 16th among states in terms of highest debt burden with an average debt of $28,984; and
WHEREAS, Illinois ranks 11th of all states with the highest number of students who must borrow to attend Illinois colleges; and
WHEREAS, Student debt more than doubled during the last 10 years at the largest Illinois public institutions, including Eastern Illinois University, Illinois State "University, Northern Illinois University, Southern Illinois University at Carbondale and Western Illinois University; and
WHEREAS, According to the Office of the Illinois Attorney General, complaints about phony debt-relief companies shopping too-good-to-be-true offers to Illinoisans topped the list of scams reported to its office in 2015; and
WHEREAS, Over the last decade, federal and state governments have increased grant aid for students at a rate that fails to match rising college costs; and
WHEREAS, Many state institutions including Illinois have faced cutbacks in government budgets which consequently have left students carrying a larger burden; and
WHEREAS, Since the State of Illinois has stopped funding the Monetary Award Program (MAP), DePaul University has announced it will honor every MAP award the state offered to more than 4,500 of its students this year and will also honor the MAP grant next year for all new entering students; and
WHEREAS, Northwestern University recently announced that starting next fall students who qualify for financial aid will receive a combination of grants and scholarships, along with earnings from work-study and summer jobs, to cover their expenses to prevent students from being saddled with crippling loan debt; and
WHEREAS, Founder David Aronson of Chicago-based Peanut Butter, Inc. runs a platform to help companies create, manage and track the impact of loan repayment plans; and
WHEREAS, A 717-person, millennial-focused survey sponsored by Peanut Butter, Inc. found that respondents were willing to stay at a job at least 36 percent longer if a company offered student loan repayment; and
WHEREAS, Peanut Butter, Inc. hopes to help other startups guide young entrepreneurs through student loan woes and announced it is partnering with 1871, Chicago's digital startup hub, to connect more than 350 member companies and alumni companies to its services; and
WHEREAS, 1871 entrepreneurs and member companies have reported that their employees want a service that would help manage their student loans; and
WHEREAS, Student debt is not only a burden for college graduates in their twenties, but also for their parents, who often co-sign for their children's student loans; and
WHEREAS, Pursuant to federal law, it is difficult to discharge student debt in bankruptcy; and
WHEREAS, Private loans lack the income-based repayment and deferment options of federal education loans; and
WHEREAS, There are fewer consumer protections for private student loans than there are for federally-backed student loans; and
WHEREAS, The threat of financial ruin should not deter the youth of America from pursuing a higher education; NOW THEREFORE
BE IT RESOLVED, that the Committee on Finance calls upon the Chief Financial Officer of the City of Chicago, as well as representatives from the private sector, the Chicago City Colleges, other local colleges and universities, the Chicago Public Schools and other high schools in Chicago, to appear before the Committee on Finance to address the current issues surrounding the student loan debt crisis.