Student loans contribute to wealth disparity because they make post-secondary cost MORE for those who can’t afford it in the first place.

Poor & middle class students pay a premium for university because they pay tuition & fees plus interest.

Privileged students pay less.

If you are wealthy enough to attend college or university without taking on debt, you only pay the cost of tuition.

If you must take on debt to go to school, you will pay 30% to 50% MORE than tuition depending on how much you borrow and at what interest rate.

here is an example of someone borrowing $10,000 at 6% over a 10 year term.

They will pay $3,322 in interest over the lifetime of their loan.

This means they paid over 33% more for the same "$10,000 tuition" bill as their rich classmate who didn't take on debt.

Even if wealthy classmate and poor classmate take the same job at same salary after graduation, the poor student is worse off.

The poor student is making $111/mo payments to student loans, but the rich student can invest $111/mo.

In 10 years the rich student has $17,560 more.

Student loans literally punish the poor and middle-class for pursuing the only avenue that gives them a shot at becoming upper class.

It is not about merit or mindset or bootstraps or hardwork.

It is corrupt and predatory and designed to maintain and exacerbate the wealth gap.