The United States of Indebted Students

The US and UK student loan systems need to change. If every student is coming out of university with $28,500 or £27,000 ($38,900) (not to mention maintenance loans, which in the UK for the academic year 2016-17 is £3,800 ($5,400) a year) this is not sustainable. If students pay it back it has implications on the wider economy as noted in the video. After all debt acts as a break on growth. If students don't pay it back, then (at least in the UK) this debt is under the state and therefore public debt, if students realise that they don't need to pay all of it back because it will be offloaded to the state in 35 years time they might use that to their advantage and further their education regardless of how much debt they get into then the government will have to loan money to pay that debt. Unlike Germany and France (again noted in the video) the UK doesn't use higher taxes to offset such debt that it now has or higher education in general



may 13 -- American students owe an average of nearly $29,000 after leaving school and that debt burden is rippling over into other parts of their lives. This QuickTake looks at America's growing, school debt problem. (Source: Bloomberg)




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