Excessive Student Loan Debt

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Over the years, the cost of college education has skyrocketed, presenting significant challenges for individuals aspiring to pursue higher learning. This socioeconomic issue has long shadowed the goals, desires, and aspirations of countless young individuals hoping to advance their education and ensure a better future. In today's modern society, concerns about affordability, accessibility, and equitable possibilities for students and families have been growing more common due to the rising trend of college expenses in the United States. The increasing cost of tuition makes it more difficult for many people to pursue a college education, contributing to education inequality and reducing opportunities for people to advance in society (Billings, …show more content…

Student loan debt can make it more difficult for borrowers to reach specific life goals that individuals want to achieve, like home ownership, parenthood, or retirement savings, which can negatively affect their general financial stability and well-being (Psacharopoulos, 1977). The impact of student loan debt affects not just the students and the families, but also the economy as a whole. Excessive student loan debt can significantly negatively impact economic growth and mobility. This will negatively affect the new city by putting pressure on people's financial stability and limiting them from becoming fully involved in the economy. One of the main ways in which student loan debt will affect the new city is that it limits how much people are spending. Individuals will find it difficult to save money for other expenses like eating out or shopping for clothes when they are forced to allocate a large portion of their income to repaying their student loans. This means businesses will get fewer customers, which could result in lower sales for companies. This leads the economy to slow down and makes it more difficult for businesses to hire new employees. Student loan debt affects people's ability to prepare for the future and their daily spending habits. Little money is left over after student loan repayment when a large percentage of income is used for savings or investing (Partridge et al., 2021). Home purchases and retirement savings are two examples of long-term financial ambitions that may be affected by this lack of resources. People incapable of saving a lot of money risk being caught in an endless cycle of financial instability, preventing them from accumulating wealth or moving up the social ladder. For instance, owning a home is frequently regarded as a crucial indicator of one's potential to succeed financially. However, those with little resources could find it

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