More on the student loan debt crisis by Martha C. White in a Time Magazine Business & Money blog burst titled Student Loan Debt Crisis: How’d We Get Here and What Happens Next?
[...] The broader economic implications are troubling. Graduates struggling to dig out from a mountain of student debt also tend to put off getting married, buying homes, and having kids. And since a bigger chunk of their income will go towards servicing the mortgages or car loans they are able to obtain at higher rates, they’ll have less spending power when they do eventually buy big-ticket items like homes and cars. Consumer Financial Protection Bureau student-loan ombudsman Rohit Chopra warned last year that the magnitude of student loan debt could even hold back a housing recovery. “Student-loan borrowers are sending big payments every month to their loan servicers rather than becoming first-time homebuyers,” he said [...]
The era of cheap money in the form of super-low interest rates that incent debt over equity or savings is killing not just our economy but entire generations in the form of elderly who cannot live on their savings, under-performing pension funds, and our future economy in the form of our debt-slave university graduates who can’t find jobs anyway.