Los Angeles, CA
Tuition for higher education tuition has increased at break neck pace for decades. Many would argue it is spiraling out of control…and they would be right. Evidence of this is seen in the now over $1.3 trillion dollars of unpaid student loan debt. Some of the economic impacts are obvious. Former students are not earning enough to repay this debt. When they do earn more money it is consumed by student loan repayments and not put into the economy. However a recent article shows there is more to this story outside of the lenders and the debtors.
20 and 30 years-olds are now delaying marriage and child birth due to student loan debt. 25% to 40% of those burdened by student loans have reported not buying a home, car, or making other major purchases because of student loan obligations. 50% risk defaulting other repayment obligations to repay student loans. 45% of recent graduates under 24 don’t even rent, but have moved back home or moved into another rent free living situation. Now, new data shows student loan debt is hampering economic innovation. Young people that own part of new business has fallen from 6% to 3%. Businesses started by someone under 34 have fallen from 26% to 22%.
The data shows clearly that students without debt innovate more than students burdened by debt. This loss of innovation in our American economy has yet untold effects. If you are burdened by student loan debt, contact a qualified debt settlement attorney and learn more about your options to alleviate student loan debt. There are often options to simply paying the balance in full over the next 30 years, especially if you have private student loan debt.
Kevin Fallon McCarthy
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