Putting a lot more money in the hands of people who would spend it would boost the economy, economists say. Duh.
I am not an economist, but it has long seemed to me that if you ended student loan payments, folks could use that money to buy houses, cars, and other consumer goods. Maybe even avocado toast! The NPR article I linked is the first time I’ve seen the media explore that idea.
- About one-third of adults under age 30 have student loan debt.
- In 2016, the amount students owed varied widely, especially by degree attained.
- Young college graduates with student loans are more likely than those without loans to report struggling financially.
- Young college graduates with student loans are more likely to live in a higher-income family than those without a bachelor’s degree.
- Compared with young adults who don’t have student debt, student loan holders are less upbeat about the value of their degree.
The last two points amount to “A college degree leads to higher earnings, but college graduates who have student debt are bummed out about it.” More detail at the Pew link.