> doesn't threaten the rest of the economy in the same way that housing loans did
I dunno about that - it's probably just a lot more insidious and less panic-y.
Adults repaying student loans aren't spending that money on other things. If you're paying $300 a month to Sallie Mae, that's $300 you're not spending on:
1) Savings/retirement/etc
2) Goods and services
3) Capital investment
4) Etc.
Given the compounding nature of some of these things, and the fact that these payments constitute a higher % of your income early on (assuming steady career progression), it's a problem that may just slowly unravel as time goes on.
Don't forget we live in a service economy - adults not spending money on a diverse set of services (as opposed to say, just student loan services) will hurt us in the long run.
I dunno about that - it's probably just a lot more insidious and less panic-y.
Adults repaying student loans aren't spending that money on other things. If you're paying $300 a month to Sallie Mae, that's $300 you're not spending on:
1) Savings/retirement/etc
2) Goods and services
3) Capital investment
4) Etc.
Given the compounding nature of some of these things, and the fact that these payments constitute a higher % of your income early on (assuming steady career progression), it's a problem that may just slowly unravel as time goes on.
Don't forget we live in a service economy - adults not spending money on a diverse set of services (as opposed to say, just student loan services) will hurt us in the long run.