How the Economy Is Impacted By Growing Student Loan Debt

Topic 

How the Economy Is Impacted By Growing Student Loan Debt

Instructions 

Write a paper on how the economy is impacted by growing student loan debt.

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The student loans are a good idea intended to enable students to access high quality post-high school education. The loans, however, have to be repaid with interest as soon as the borrowers graduate from college. Many of the students do not get employment after completing their studies, yet they have to repay their loans (Cornelius & Frank, 2015). Besides, most of the students are young adults, who wish to settle down after their degree. That is, the young adults look forward to finding a job, purchasing their first home, and starting families. The burden of the student loans, however, affects all of these aspirations of the graduates (Girouard, 2018). To this end, there are pertinent issues associated with the student loans burden in the US.

First, the student loans affect the consumption power of the debtors.  The students, after graduating from college, are eager to start working and earning (Nova, 2018). Where the students have secured a job, perhaps the first priority is to repay their student loan. As such, before one has even figured out their life, they already have a serious financial responsibility, which they from which cannot escape (Gicheva & Thompson, 2014).

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