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Running Head: IMPACT OF STUDENT LOAN DEBT IN THE US 1
Impact of Student Loan Debt in the US
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IMPACT OF STUDENT LOAN DEBT IN THE US 2
Introduction
With the rapid rise in higher education costs, the United States government has always
considered student loans as an appropriate option of helping students meet their educational
expenses and costs (Krabbe, 2020). As a result, the US has recorded an escalated student loan
debt, which has impacted the borrowers, communities, societies, and the economy. The increased
levels of student loan debts are a creeping threat that cannot be refuted. Since 2004, these debts
have tripled, making tuition assistance hard today, especially in schools with small endowments
(Friedman, 2020). Defaults and delinquencies have being a common cause of large student loan
debts. As such, these huge debts have directly affected the students, society, and the economy.
These debts limit the student's life choices for decades as they derail their ability to buy a home
or save for retirement (Krabbe, 2020). Also, the escalated loan debts affect society since it tends
to become a burden to the family as they will most likely be staying with their parents while
financing the debts. Economically, the overwhelming debts make more students, especially from
low-income backgrounds, avoid attending colleges, which harms the economy because it leads to
a shortage of educated workforce in the country. Therefore, it is imperatively clear that escalated
student loan debts have far-reaching effects on the student, society, and the economy.
Impact of student loan debt to the borrowers
Student loan debts affect the indebted person's life in many ways, especially when it
comes to establishing their financial independence. Defaulting a loan affects the borrower's
credit ratings, and in return, this presents a challenge to the indebted person when it comes to
purchasing a car or home in credit (Kim & Chatterjee, 2019). Also, insurance companies using
credit ratings to ascertain their rates; thus, the indebted person finds it hard or expensive to

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Running Head: IMPACT OF STUDENT LOAN DEBT IN THE US Impact of Student Loan Debt in the US Name Course Tutor Date 1 IMPACT OF STUDENT LOAN DEBT IN THE US 2 Introduction With the rapid rise in higher education costs, the United States government has always considered student loans as an appropriate option of helping students meet their educational expenses and costs (Krabbe, 2020). As a result, the US has recorded an escalated student loan debt, which has impacted the borrowers, communities, societies, and the economy. The increased levels of student loan debts are a creeping threat that cannot be refuted. Since 2004, these debts have tripled, making tuition assistance hard today, especially in schools with small endowments (Friedman, 2020). Defaults and delinquencies have being a common cause of large student loan debts. As such, these huge debts have directly affected the students, society, and the economy. These debts limit the student's life choices for decades as they derail their ability to buy a home or save for retirement (Krabbe, 2020). Also, the escalated loan debts affect society since it tends to become a burden to the family as they will most likely be staying with their parents while financing the debts. Economically, the overwhelming debts make more students, especially from low-income backgrounds, avoid attending colleges, which harms the economy because it leads to a shortage of educated workforce in the country. Therefore, it is imperatively clear that e ...
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