Student loans are cramping the American economy: what this could mean
Adjuncts, consider the long term effects of our own student debt. Many of us carry a substantial student debt load from grad school. Our work status makes it even harder to qualify for PSLF. It’s not just the debt making adjunct futures grim. However statistically insignificant when compared to the general student population, we are. as a group, aging out. Seniors are a vulnerable population and among the most affected by changes in insurance, Medicare, Medicaid, access to affordable housing, USDA and other programs in the fraying social safety net.
Many people think student loans are a problem for American students in 2017. The total amount of debt is enormous, a good number of students carry serious loans, some leave school owing money yet lacking academic credentials, etc. I and others have been enumerating these problems for a while.
Could the negative impact of student loan debt reach even further? Might the sheer size of $1.4 trillion in debt damage the broader American economy?
The New York Federal Reserve Bank just released a studying arguing that this is the case. Specifically, a significant number of students now carry enough debt to prevent them from buying homes. This in turn cramps the housing market and weakens overall national economic growth.
Zachary Bleemer, Meta Brown, Donghoon Lee, Katherine Strair, and Wilbert van der Klaauw (pdf) found that millennials loaded up with increasing debt were less likely to buy…
View original post 586 more words