Student Loan Debt and Economic Outcomes

If the US wants to help their economy they would be well advised to deal with student loan debt and invest in that rather than tax accommodations to the very rich so they can put their money in the Cayman Islands or antiques.

Student Loan Debt and Economic Outcomes

Source: Federal Reserve Bank of Boston

This policy brief examines the impact of student loan debt on individuals’ homeownership status and wealth accumulation, employing a rich set of financial and demographic variables that are not available in many of the existing studies that use credit bureau data. It is important to understand whether and, if so, how student loan debt affects households’ economic decisions because student loan debt has now surpassed credit card debt to become the second largest amount of household debt outstanding after mortgage debt.

Stephen