How Do Student Loans Affect The Economy

Education is greatly valued all around the world. Those who have it take it for granted and those who don’t will do anything to obtain it. Little do those people know that going to college could be the worst financial decision they’ve ever made. Education use to be something you did not think twice about. Sadly, that’s no longer the case since student loans have nearly quadrupled since 2004, to just under $1.2 trillion according to the Federal Reserve Bank of New York. However, there are some who claim that student loans are not affecting the economy at all since borrowing and lending money do not make consumer spending larger or smaller it just changes who is doing the spending when. This is right in the sense that the same amount of money is being spent however, where this money is being spent does affect the economy. There has been direct signs of our economy diminishing due to these high student loans and it will only continue to get worse. Interest rates for student loans must be lowered for the security of our economy and the wellbeing of our citizens.
Student loans have been in America even before the U.S. Department of Education was created in 1979. Over the years loans have changed significantly. Loans started out …show more content…
That extra $1,000 you will be getting will not make a difference when finding a home, car, or starting a family. That extra money will be going right into your student loan debt. And it doesn’t matter if it helps you pay off your loans faster because you will still need a house, car, etc. before then. So, really that extra money will not be of any use when you need it most. The only gain you get from getting your college degree is knowledge. Which is very important, but is it worth bankruptcy? That is the question that Americans have to ask themselves now. Whether you get your college degree or not there is going to be consequences that we won’t by any means be able to