I coined the term “affordable family formation” a decade ago to suggest to Republican strategists a coherent plan for long term survival.
The growth of US student loan debt: causes and consequences
Cardiff Garcia Author alerts | Jun 10 09:29 |
Additionally, Dora Gicheva suggests that each $10,000 in additional student debt decreases the borrower’s long-term probability of marriage by 7 percentage points. A 2010 poll found that 85 percent of college graduates were planning to move back home after graduation. (Dickler 2010). The high unemployment rates and low income of new graduates are the leading causes behind these survey results. But having large student loans can certainly make things worse.
Dew (2008) finds a negative correlation between reduced marital satisfaction and student loan debt, positing that increased stress related to consumer debt—including student loans—could diminish marital satisfaction. About 14 percent of borrowers surveyed in 2002 reported delaying marriage due to student loan debt, up from 9 percent 15 years earlier. Over the same period, the share of borrowers who reported that they delayed having children due to student loans jumped from 12 percent to 21 percent (Baum and O’Malley 2003).
The current system is a machine for creating Democratic voters. But Republican politicians have been bought off by its semi-privatized nature, which creates a lot of for-profit opportunities for firms employing Republican lobbyists. The solution is perhaps to let the Democrats de-privatize the system, and then the Republicans can oppose it on general principles.