The Impact of Student Loans on the Enrollees in the US

This paper reviews the background of student loans and the rising and falling tuition fees, and estimates the impact of higher education loans on students comprehensive development and the larger economy in the US. This paper first finds that borrowing loans does not necessarily mitigate students financial difficulty, and it is likely to make the borrowers struggle with repayment after years. Second, having student loans cannot be used as a criterion to judge students academic ability. Third, working part-time is a double-edged sword for students, offering both benefits and harm, especially if students work for extensive hours. Lastly, the impact of large debt on government revenue, household wealth accumulation and aggregate consumption is assumed to be mostly negative towards the overall economy. The balance between repaying loans and focusing on the coursework is reiterated for students with loans, and related fiscal policies and supervision should be implemented to prevent excessive student debt, which might jeopardize other sectors of society.