Most students that graduate college or university have had to take out a student loan to be able to afford their tuition fees. Recently the Federal Reserve Bank did an analysis of spending amongst people in their mid-20’s which revealed that since the recession people who have student loan debt are not moving onto the next milestone of making large purchases such as motor vehicles or houses while the people who do not have student loan debts are making the car and home purchases. The decline in additional purchases from people with student loans can be directly related to the increased credit score rating requirements which were put in place early in 2008 as well as the fact that the debts incurred for student loans means that there is less total household income coming in each month as the salaries or wages of students has not increased in accordance with inflation. Therefore it looks like the student loans are crippling the American economy as the purchase of cars and homes increases the amounts of jobs available and the entire economy benefits from these long term financial investments.
Source: Money US News