Student debt poses risk to national economic growth

Students around the country – and often their parents – have racked up so much college debt since the recession that it now threatens the nation's economic growth, writes Jim Puzzanghera for the Los Angeles Times.

The debt weighs down millions of Americans who might otherwise buy homes or start businesses. And the financial horror stories of debt-saddled students, combined with continued increases in tuition, could deter others from attending college and could produce a less-educated workforce.

"The impact on future [economic] growth could be quite significant," said Cristian deRitis, who analyses consumer credit economics for Moody's Analytics. The amount of outstanding student loans has skyrocketed 76% to almost US$1.2 trillion since 2009, as college costs have shot up and graduates have had difficulty finding high-paying jobs.
Full report on the Los Angeles Times site