The document discusses the effects of student debt in the United States. It notes that over 44 million Americans have over $1.47 trillion in student loan debt. The average student loan debt for the class of 2018 was $29,800. Having large student debt burdens can decrease consumer spending and limit purchases of major items for many years as graduates dedicate a large portion of incomes to paying off loans. The debt also contributes to anxiety, depression, and lower rates of homeownership among young people. While student debt hinders finances in the short-term, obtaining a degree may lead to higher lifetime incomes. Overall, student loan debt presents major challenges for personal financial advancement.

1. The Effects of
Student Debt
By- Jada McClure

2. • Almost 44.7 million
Americans have a student loan
debt totaling to a staggering
more than 1.47 trillion dollars
at the end of 2018.

3. • According to Student Loan Hero, among
the class of 2018, 69 percent of students
took out loans and graduated with an
average debt of 29,800 dollars, including
private and federal debt.

4. • The Federal Reserve mentioned that
graduates owe more than 20,000 dollars
which is more than what they owed 13
years ago which can result to a decrease
in consumer spending. Having a large
debt such as this can result in high
monthly payments that can take a huge
chunk out of a yearly income for new
college graduates.

5. • Some college students have to take on
day job to pay for college. Here is Alexa
Hutchins, 22, originally from Florida. She
works 24 hours a week to help her
parents pay for her college tuition and
living expenses.

6. • 53% of people felt depressed because of
their student loans and 90% reported
that student loan debt had caused them
anxiety.

7. • According to Magnify Money, 1 in 3
planned to spend less on holiday
shopping due to their student loan debt.

8. • Some college grads are prohibited from
actively participating in the economy,
thus refraining from purchasing housing.

9. • Debt could also prohibit homeownership
as student loan debt causes a 1 to 2
percentage point drop in the
homeownership rate for student loan
borrowers during their late 20s and 30s,
according to Forbes.

10. • Disposable income for big purchases such
as household items is limited due to
having to maintain student loan
payments upon other bills.

11. • 14 percent of parents also took out an
average of 35,600 in federal Parent PLUS
loans.

12. • Despite student debt crippling disposable
income, it can also lead to higher incomes
due to obtaining the degree that
student’s paid thousands of dollars for.

13. • Student loan debt affects everyone. It has
become one of the Millennial
generation’s greatest hurdles in the
efforts of making life advancements.