"Student loan debt is being linked to poor mental and psychological functioning among young adults and students.
Published in the January edition of Social Science & Medicine, lead author Katrina M. Walsemann of the University of South Carolina analyzed data from the National Longitudinal Survey of Youth to determine that students weighed down by loans were more likely to exhibit signs of damaged mental health — including increased levels of depression and stress." …
I’m confused as to why students are allowed to borrow so much on their education which can’t be repo’ed, but we restrict people from borrowing “too much” on houses, cars and other hard assets which can be recovered.
Am I not seeing this the right way?
Who is going to set the number for “too much?” Will it vary based on parental income? Won’t that restrict access to groups of students? The government already limits the amount a student can borrow, yet students will borrow private loans. If the lender can lend, the school must certify.
No matter what scheme is used to set limits, I’m sure there will be students who feel like their access has been restricted, particularly in instances where they want to borrow for a very expensive education.
However, it seems like we already restrict access to luxury consumer goods, why wouldn’t it be proper to restrict access to luxury educations? Consumers who can’t get loan approval for a luxury vehicle can always save up a larger downpayment in order to meet requirements. Students who thought they should have that very expensive private school degree could always work, save or hold bake sales to make up the difference.