"With our collective student loans reaching a staggering $1.56 trillion, it’s not surprising that education debt has an influence on the U.S. economy. More than 45 million Americans owe student loans, and the Brookings Institution predicts the rate of student loan default may reach nearly 40% by the year 2023," Student Loan Hero reports.
"According to Justin Draeger, president of the National Association of Student Financial Aid Administrators, student loans can have a positive impact overall as long as the borrower finishes their degree.
'Since loan debt is used to pay for educational expenses, yes,' said Draeger, when asked if loans can positively impact the economy. 'Even those with some education are statistically better off and more likely to earn more money over their career than those who are without postsecondary education.'
Draeger adds that lower rates of homeownership and similarly downbeat economic statistics can’t be solely attributed to student loan debt alone.
'Whether home buying and savings are impacted by loan debt, depressed wages, and shifting attitudes between different generations is tough to pinpoint,' said Draeger. 'It’s likely a combination of all three.'"
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 10/30/2019