Essay Student Loan Debt And The Economy

1818 Words Apr 15th, 2015 8 Pages
Student Loan Debt and the Economy
Ever since the idea of going to college was created students have always worried about how they were going to pay for it. In 1958 the government thought of a solution and the first federal loans for college were introduced (New America Foundation). shortly after former students started to struggle with paying them back, 57 years later students are still fighting the same battle. with interest rates and the costs of tuition rising students are still encountering the same hassle if not even worse. In March of 2014 the average student loan debt in America was around $30,000, A few years earlier in December of 2008 the average student debt was only $20,450. That is a 25% increase in less than 6 years. However the total student debt in America has accumulated to be around 1.2 trillion dollars (denhart) that is more than credit card debt in America. Student debt does not just affect the borrower or the co-signer it affects anyone that contributes to or even cares in general about the economy. Some experts would even go as far as considering it currently the biggest threat to the economy. the topic of student loan debt it extremely important because it does not just effect the borrower it affects the rest of America, as well ad there is long term negative effects, and discourages some student from going to 4 year schools.
Student debt affects the person that borrowers and if there are any co-signers on the loan. If a person is in a massive amount…

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