Tag Archives: Millennials

How Student Debt Can Harm the Economy

Student loans could have consequences that extend into areas such as the housing market, consumer spending and economic growth. Almost 40 million Americans have student loans, with the median amount of debt at almost $30,000. For some graduates, this $30,000 burden will make it difficult to start businesses and afford homes, which could have a negative effect on the future American economy. Some analysts and organizations are more optimistic, claiming student loans have not held back young professionals from buying homes. According to a report from Zillow, a real estate analytics company, home ownership does not decrease based on student loan balances held by graduates. Zillow claims the most important predictor of whether individuals with student loans will become homeowners is whether they finished college. Those who are more pessimistic, such as the Financial Stability Oversight Council, claim high student loan balances could negatively affect household consumption and would limit…
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