Why Student Loan Debt Matters…To The Economy
By Consumers Union on Tuesday, April 10th, 2012
This past weekend, the San Francisco Chronicle highlighted the harsh realities of student loan debt – and how it impacts the nation’s economic recovery:
“In her 20s, Connie Swain shelled out a lot of money to a private vocational school to learn computer skills, relying on student loans for tuition and expenses. ‘I was young and didn’t really have a sense of how to do things,’ said Swain, now 44…I didn’t realize what I was getting myself into at the time.'”
Connie works as a case manager for homeless families at a San Francisco nonprofit, and would love to be able to buy a home, but her student debt holds her back:
Connie’s story is all too common – and unfortunately, as more student loan borrowers struggle to repay their loans, our economy will feel the impact. Debt-laden graduates are more likely to postpone milestones like buying a home, and their income will be funneled into loan payments instead of stimulating the economy. According to the Federal Reserve study, only 9 percent of people ages 29 to 34 got a first-time mortgage from 2009 to 2011, versus 17 percent a decade earlier.