I had neglected writing about this topic, simply because I didn't think there'd be much interest in a discussion about student loans and their effect on different economic markets. However, recently I've discussed this issue with several people, and I think it's quite timely.
Earlier this month, Tom Royce, blogged about the effects of student loans on the real estate market in his post, "Could Student Loans Be Hurting The Housing Market?"
I think it's a great post that needs more coverage. I think the post covers two very important topics that translate to other markets (namely retirement).
Tom states that the massive amounts of student loan debts have halted any future savings or planning. People are literally "just getting by." Prospective homeowners are doing the bare minimum in order to get ahead. The same holds true for other economic entities.
This is very bad for our country and future economy.
I posted previously about the good, bad and ugly of student loans. As Tom notes, the same holds true. I cannot believe how crushing student loan debt has become, with no way of getting out. The student loan-shark industry is really the only industry that receives unprecedented protections (maybe the oil industry?).
I'd seriously think twice about student loans. They're astonishing selfish in allowing you to accomplish what you truly desire.