Effects of the Student Loan Debt

Effects of the Student Loan Debt
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The student loan debt is the only debt that has increased even during recessions when other loans seem to contract. It has also surpassed the credit card debt to second the mortgage loans both of which are bankruptcy dischargeable (Cooper & Wang, 2014). I think it is high time that the federal regulations regarding student loans are changed to be dischargeable due to their economic ramifications of the future generations.
The failure to alter the regulations to student loans adversely affects the ability of the affected individuals in obtaining mortgages and home purchases for facts beyond their control (Hillman, 2015). It means that in future, the society might have many educated youths who will be homeless due to the inability to raise finances owing to the poor credit ratings from failure to service their student loans.
Secondly, most employers today check the credit rating of an applicant before extending a job offer (Cooper & Wang, 2014). The applicants who benefited from the loans most likely will not have serviced their loans, and as such, they will experience a disadvantaged position. The rates of unemployment will soar and with it, increase in the socio-economic crimes like theft and increased dependency rates. The general standards of living are set to decline soon as a result of the low economic activities.
Most of the supporters of the student loan have argued that it is a critical undertaking in human capital, but such debts stifle the spending abilities (Hillman, 2015).

The economy is run by consumer spending, and when the consumers cannot spend due to the inability to afford the extra expenses, there will be lower profits and revenues. The spin-off causes slower growth in the financial aspects of a nation as even new investments will be avoided due to lack of funds.
References
Cooper, D. & Wang, J. C. (2014). Student loan debt and economic outcomes. The federal bank of Boston: Currency policy perspectives review, Vol. 14 (7): pp. 1-37
Hillman. N. W. (2015). Borrowing and Repaying Student Loans. Journal of Student Financial Aid, Vol. 45 (3): pp.35-48