Students around the country — and often their parents — have racked up so much college debt since the recession that it now threatens the nation’s economic growth.
The debt weighs down millions of Americans who might otherwise buy homes or start businesses. And the financial horror stories of debt-saddled students, combined with continued increases in tuition, could deter others from attending college and could produce a less-educated workforce.
“The impact on future [economic] growth could be quite significant,” said Cristian deRitis, who analyzes consumer credit economics for Moody’s Analytics.
The amount of outstanding student loans has skyrocketed 76% to almost $1.2 trillion since 2009 as college costs have shot up and graduates have had difficulty finding good-paying jobs.