Student Educational Loans and Life-Stage Milestones
Keywords:
business, economics, student educational debt, life-stage milestonesAbstract
The cost of college education increased by 25 percent since 2008 while student debt increased by over 100 percent for the same period and stands at $1.727 trillion representing over nine percent of household debt. This paper uses a survey to assess the impact of student loans on major life-defining decisions by students in a private university. The results indicate that educational loans have negative effects on savings for retirement, wealth creation, career choices, and life milestones like homeownership and starting a family. Moreover, the financial burden of the loans leads to stress and anxiety about future financial stability.
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