Student Loan Debt and the Economy

Student debt is a large and growing problem in the U.S. In many cases, college graduates are left with a diploma and an enormous financial burden of credit card and loan debt. According to the Bureau of Labor Statistics, the U.S. has more than $1.2 trillion in outstanding loan debt, about 40 million borrowers, with an average balance of $30,000. The Federal Reserve Bank of New York created a chart that shows the hardest- hit age group has been people in their 30’s. Thirty-something year olds have seen their outstanding student loan debts nearly triple since 2014 as some have returned to college or attended graduate school because loans became more accessible.

The rise in student loan debt is having a crippling effect on economic activity. A lot of things are being postponed because people only have so much money. A survey also done by the Federal Reserve Bank of New York also found out that those who are not in great debt are able to afford houses and cars, while others who are high in debt are not investing into buying homes and cars because large portions of their incomes are being eaten up by student loans. They are also less likely to start small businesses that provide jobs and services that drive the economy.

Although there are financial aid programs and scholarships that help pay for college, there should be more ways Americans should be able to receive an education without having to pay a tremendous amount of money fresh out of school with no guarantee of a job that'll match what needs to be paid. Getting an education should not be a debt sentence.

I do like your clever play on words at the end, the "debt sentence". One consideration I would like to ask of you, is the following: Has financial aid been factored into any of these statistics? Provided that not everyone qualifies and military is exempt from this debt, what percentage is left after considering those who just go to college? I feel that financial aid incentives can offset the actual debt amount, in that the percentages vary per state. In fact, according to studies conducted 2011/2012 show the average amount of financial aid provided was $10,800. This percentage is not owed back to the government and creates a heavy dent into the amounts you were proposing.

Just out of curiosity, did any of these individuals know the risks ahead of time? Personally, everyone I have talked to in this school know the risks of student loans and generally try their best to stay away from them. i feel as if this should be addressed by some article.