Believe it or not, a new study says that student loan borrowers are doing just fine.
Earlier this month, when President Barack Obama announced a plan to give more student loan borrowers access to an income-based repayment plan, he illustrated the trouble college students and recent graduates face by telling the story of a woman named Ashley from Santa Fe. Ashley, the president said, wrote to tell him that at not even 30 years old, she’d given up on her future because she “can’t afford to have one.”
But Ashley might be an exception, according to a new report from the Brown Center on Education Policy at the Brookings Institution.
While much has been made about the nation’s trillion dollars worth of student loans, which now exceeds American’s auto and credit card debt, the study finds that there’s little evidence that a crisis is looming. “Our analysis of more than two decades of data on the financial well-being of American households suggests that the reality of student loans may not be as dire as many commentators fear,” the study says.
The nation would be approaching a crisis, says the report’s co-author Matthew Chingos, if ...