What are the effects of student debt?

      For many college students, taking out student loans is necessary to pay for higher education. The issue of student debt has come to light over the past few years due to the long-term trends that seem to be a result of it. According to Abigail Hess, a contributor to CNBC Make It, "over 44 million Americans hold a total of $1.4 trillion in student loan debt." This burden doesn't just go away a few years after one receives their degree. The time it takes to pay off student debt varies. With a standard repayment plan, it can take around ten years, yet some still expect to be paying off loans well into their forties (Hess).
      Overwhelming student debt can serve as a hindrance to reaching personal milestones. Since the recession of 2008, homeowners under the age of thirty have been in decline; however, this drop is even more dramatic for those with "a history of student loan debt" (Korkki). The money put toward debt simply makes it harder for people to afford a house. It also affects one's net worth. Vice states that "the average millennial with student debt had 75 percent less net worth than their debt-free peers." Student debt doesn't just threaten the financial stability of individual people; it threatens the economy as a whole. Those who had to endure the payment of student loans are less likely to start their own business. When "60% of new jobs are in small businesses," it is evident that this negative trend will hurt the economy. The snowball effects of student debt force graduates to press pause on personal endeavors that were once American norms and can ultimately result in a broken economy.


https://www.vice.com/en_us/article/8xjpxa/student-loan-debt-is-bringing-on-millennial-class-war

https://www.cnbc.com/2017/07/03/this-is-the-age-most-americans-pay-off-their-student-loans.html

https://www.nytimes.com/2014/05/25/business/the-ripple-effects-of-rising-student-debt.html