Analysis of the Broad Economic Implications of Student Debt

Abstract

This paper addresses the relationship between student loan debt and its effects on major adult milestones like marriage, career choices, and homeownership. Using data from the U.S. Census Bureau and the Department of Education, I find strong correlations between higher student loan balances and delayed timing in marriage and homeownership. For example, correlation coefficients for student loan debt found using linear regression indicates that every $1,000 in additional debt delays homeownership by approximately 4 months. I also find strong correlations between higher student loan balances constraining career choices into higher-paying (but potentially less purpose-filled) jobs. These findings, alongside existing literature on these topics, highlight an ever-growing problem within higher education in the United States with long-term economic consequences.