Student Loan Debt And Its Effect On Our Economy - 1431 Words

Portfolio Project Throughout the years student loans has increasingly began to affect our economy and is a large and growing issue. Mounting student loan debt is ricocheting through the United States, now affecting institutions and economic patterns that have been at the core of America s very might (Holland 2015). General economic principles are affected by the constantly growing student loan debt in the economy. Macroeconomic indices are identified and defined with their roles in student debt growth and affect in students’ lives. A proper evaluation, decision, and forecast will be revealed to suggest a better approach at the growing issue. The cost of education continues to increase making it difficult for individuals to afford on†¦show more content†¦Programs are offered to graduates that assist them in decreasing their student debt, such as SmarterBucks. The basic idea is a twist on classic loyalty programs, which reward customers with points that translate into d iscounts, airlines miles, or cash back. In this case, participating merchants pay SmarterBucks a referral fee, up to 10 percent, on every purchase that originates from its site. SmarterBucks then rewards half of that amount to the member who made the purchase — in the form of direct payments to their student loan servicers (Shekhtman 2014). The incentives of borrowing in order to obtain a degree is driving students into debt and they’re often unable to practice in their field. Benefits Generally when students are evaluating their college selections they consider the forms of financial aid. Scholarships and grants are always the preferred form of financial aid as they do not require repayment, and can be considered free money. But even with scholarships and Federal grants, most students will face a gap in their college fund that requires a student loan of one form or another. Both Federal and private lenders understand the requirements of a college career, and strive to make education loans easier to manage for the student borrower. (GoCollege 2016). Lenders offer low fees on student loans making it manageable for graduates and it can also greatly increase credit scores along the way. Employees with a degree often receive higher benefits