Essay On Student Debt

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Recommended: Negative effects of rising tuition costs

The burden of student loan debt is significantly impacting financial decisions of individuals and families from investing in home purchases, saving for retirement, and their children’s education. Ultimately, these financial decisions are negatively impacting the growth of American society and economy. Without haulting the increasing costs of tuition and streamlining lending practices, student debt will only continue to increase and drag society down.
Student loan debt is hindering the economic growth of the communities the individuals and families, carrying debt reside in. According to Holland, “there is more than $1.2 trillion in outstanding student loan debt, 40 million borrowers, and an average balance of $29,000.” Payments into student loans are increasingly substituting mortgage, vehicles, credit card, and other loan payments. In 2005, student loan debt accounted for less than 13% of the total debt load for adults age 20-29; today student loans account for nearly 37% of that outstanding debt (Orman). The ability to save money for a down payment on a mortgage is becoming less feasible for student loan holders. Saving money for retirement, their children’s education, or any other investment is reducing while student loans are accumulating. In addition to outstanding loan debt, students are recurrently defaulting on their loans. By 2012, student loans registered the worst delinquency rates …show more content…

Not only future credit but employment as well. More and more employers are checking credit scores. Research has found that the burden of student debt hinders innovation and entrepreneurship (Holland). Debtors want to find employment as soon as possible to start or continue paying on their student loan. Saving enough money to start a business is becoming less likely. Entrepreneurship keeps the US economy flourishing, creating

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