Good investment or not, student loan debt is creating ripples later in life – sometimes much later
Education debt is generally good debt and is a problem for students who are not doing well in college or not taking challenging courses or majors, said Wharton professor of business economics and public policy Kent Smetters, faculty director of the Penn Wharton Budget Model. Getting a communication degree today, for example, is less valuable than in the past unless you know modern technologies – for example, SEO – to help with obtaining a good job.
Still, if not all debt is created equal, neither are some of the payoffs. Women working full time were found to earn 25% less than men, the Georgetown study concluded, and, at the highest education levels, African Americans and Latinos could expect to earn close to a million dollars less than their white and Asian counterparts over a lifetime.
A 2014 U.S. General Accountability Office study of student debt for older Americans uncovered a surprising trend: Although it is a small number, a percentage of Americans age 65 and older are carrying student debt, and the number is growing. (más…)
