The Brookings Institute’s Beth Akers and Matthew Chingos have conducted a study analyzing over twenty years of financial data. Using data from the Survey of Consumer Finances, the pair concluded that the student debt situation may not be as detrimental as some experts have led us to believe.
Findings suggest that about ¼ of the increase in student debt can be attributed to Americans pursuing more advanced degrees, rather than a significant increase in the cost of obtaining a bachelor’s degree alone. It was also determined that the average lifetime income of Americans with a college education has actually kept pace with the increase of student debt, and an increased repayment period has allowed borrowers’ the monthly payment to remain consistent over the years. Overall, the study suggests that the average borrower (not those with incredibly high amounts of debt) is not suffering financially post-graduation.
