Learn How Student Loans Impact the Economy

There are numerous reasons why college is so expensive nowadays. Less state money, more on-campus amenities, and higher administrator compensation contribute to the average college cost outpacing inflation for decades.

This increasing cost makes it impossible for regular students to graduate debt-free.
As student loan debt in the United States continues to rise, many borrowers struggle to manage their debt.

That is no surprise, given the average student loan debt of $28,500 for undergraduate students and $65,000 for graduate students.

After graduation, student loans substantially impact borrowers, impacting everything from where they work to how many children they want. Each generation suffers from this persistent, deteriorating financial constraint, which is poor news for an economy that relies on consumer purchasing power.

Read on to find out how student loans affect the economy in both positive and wrong ways.

Higher Education Has a Positive Economic Impact 

There are numerous reasons why a college degree might benefit a person, but it also helps the economy. College graduates are often happier, healthier, and wealthier than high school grads. Graduates are also more inclined to vote, donate to charities, and volunteer.

However, although some degrees provide graduates with excellent earning potential, others may leave debtors worse off than if they had never attended college.