Student loans, especially for degrees with little market value, seriously impact a individuals life time wealth as well as their piece of mind. Unfortunately while massive Govt backing of student loans has made it possible for more individuals to go on to higher education it has made a education bubble greatly inflating costs. Worse there has been little increase, in some cases decent sized declines, in people seeking degrees in areas such as Medicine, the Sciences, Engineering, and Technology.
We’ve devoted considerable space on this blog documenting the ways in which student debt prevents young people from beginning their lives as adults. A study from Demos, for example, finds that among college graduates, those without student debt are more likely to own a home and enjoy lower interest rates on their mortgages. But the effects of debt can also linger into older adulthood, even when the loans are paid off: the study found that debt-free grads build up a hefty $208 thousand more in wealth over the course of their lifetime. Time breaks down the reasons why: