Wednesday, November 14th, 2018
Category: Student Loans
Student Loan Debt in Relation to Economic, Family, and Health Outcomes in Early Adulthood: A Literature Review
Student loans are an increasingly prominent and often necessary source of financial aid for many college students who are investing in their human capital by pursuing higher education. However, student loan debt can negatively impact individual and family well-being. This literature review surveys recent studies that examine student loan debt held by young adults in relation to important life outcomes in the economic, family, and health domains. Overall, recent findings indicate that moderate amounts of student loan debt have moderate to negligible impacts across economic, family, and health outcomes. High amounts of student loan debt are shown to be deleterious across multiple types of outcomes. Research also indicates that those who do not complete college, minorities, and those who are socioeconomically disadvantaged are at greater risk when holding student debt for negative economic and health outcomes. Financial counselors and planners can increase the quality and impact of their services by understanding how varying amounts and types of student loan debt influence individuals' and families' financial decisions, ability to set and meet financial goals, and overall quality of life.