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Long Term and Short Implications of Student Loans Assignment Help

To complete this assignment, you will explore the short-term and long-term impact of student loans/other loans on your earnings, both positive and negative.

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Discussion: Short term and long term implications of student loans and other loans on earnings:

Though student loans are promising a better career and better life in the future, the long term consequences are not encouraging. The financial health of the millennials taken the student loans is not impressive. It is requiring them to pay several times higher than what they used to receive. For example a student loan of about $30k can cut about $325K from 401(K) at the time of retirement.  Own houses are also found to be less for students with loan debts when compared with those without student loans.  Student loans also will restrict the capital available for students when they graduate out and this inturn can limit their capacity to start new ventures and start-ups(Elliot and Lewis,2015). This is another disadvantage of student loans on long term employability and employment opportunities of the students. Short term implications include impact on the consumer spending power, delaying in the traditional life mile stones, economic power switch over from students. 

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