Effects Of Student Loan Debt

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Student loan debt has increasingly become an issue, not only for those who have acquired it and must deal with it, but also for the economy. To function normally in today’s society, pursuing a college education is a requirement for those who want a high paying job. With this decision, students also decide to take on large amounts of student loan debt and the long-term turmoil that it inevitably leads to. Student loan debt impacts students purchasing power which negatively impacts the economy. Over 42 million people owe $1.3 trillion in student loans (Rosato). Recent state disinvestment in public universities has led to tuition increase, forcing students to borrow more than ever before. As a result, over 20% of these students are denied loans for other things, like purchasing a home, buying a car, or starting a business all because student debt has negatively impacted their credit. Student debt diminishes a student’s purchasing power and stops them from being productive members of society and this directly and …show more content…
Though student loan debt is very real the risk and debt that comes along with pursuing a degree is ultimately the better option because “Those with professional degrees had a median income of $87,356, more than three times that for high school grads” (Matthews “Part II”). This realization forces students to take out loans despite its consequences because racking up debt is the only way to have any chance at a good paying job. The fact is, “because of the poor job market, young people may have less of a chance than ever to actually get a good job commensurate with their education” (Taibbi). For those who choose to pursue a 4 year degree and deal with the debt, still struggle afterwards for many years trying the manage the debt they accumulated, diminishing their purchasing power long after starting their career causing them to postpone all investment

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