Paying Off Student Loans Puts A Dent In Wallets, And The Economy
Career College Central summary:
Weighing in at more than $1 trillion, student loan debt is now larger than total credit card debt. NPR recently asked young adults about their biggest concerns, and more than two-thirds of respondents mentioned college debt. Many say they have put off marriage or buying a home because of the financial burden they took on as students.
William Elliott, director of the Assets and Education Initiative at the University of Kansas, says the burden of student loans isn't just a personal, short-term problem for individuals. Loans now make up too large a part of financial aid packages, he tells NPR's David Greene, "and they're too big of a part of how we finance college."
As a result, Elliott says, too many young people are spending years on loan repayment instead of growing personal wealth through investments like real estate and retirement accounts. In the long term, Elliott adds, that can be a drag on the economy — and create a wealth divide between people who have student debt and those who don't.
Click through to listen to the report.