Friday, April 26, 2013

Mike Konczal — Are Student Loans Becoming a Macroeconomic Issue?

If you asked economists looking at the data if student loans could be having a macroeconomic effect, especially through a financial burden on those that have them, they'd say that the actual percent of monthly income paying student loans hasn't changed all that much since the 1990s. They may be making larger lifetime payments, since they'll carry the debts longer, but that's a choice they are making, which could reflect positive or negative developments. Certaintly there's no short-term strain. So there aren't any economic consequences worth mentioning when it comes to student loans.
I always thought this approach had problems....
Truthout | News Analysis
Are Student Loans Becoming a Macroeconomic Issue?
Mike Konczal, Next New Deal

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