From The Finance Lab
The dangerous and sometimes disastrous consequences of student loan debt are well known. We know for a fact that students with high debt levels are less likely to be entrepreneurs, less likely to own a home when they are 45, and less likely to find an ideal job. The value of a college education is therefore reduced dramatically for those who need to service the debt to pay for it.
However, until recently, few have studied the long-term effects of student debt on the net worth of families burdened by the loans. With my colleagues, Birzhan Batkeyev and Karthik Krishnan, I recently set out to address this gap—showing once again that the very loans that are supposed to help students get a leg up on their financial future, hamper them in myriad ways instead.