What does increase interest rates mean for the future of young Americans?
Economists believe that this burden is delaying major spending decisions and household formation among young workers, and that it might depress their wealth accumulation over time.
A recent report from the Urban Institute found
- Women are not more likely to have student-loan debt than men, but they are more worried about paying it back.
- Concern is basically even across age groups, though younger workers are much more likely to have student-loan debt than older workers.
- People who live in the Northeast also seem to be particularly concerned.
- Even controlling for household income, those without full-time jobs tend to be more worried.
The increase of student loans is going to affect the American economy immensely and no one is really ready for the repercussions. If graduates have bad credit because of student debt. How will they be able to buy a home or have a family. Incomes are going to be controlled and the American dream will be much harder to reach.
Picture by money.cnn.com