A White House Council of Economic Advisers report that touched on all of the pitfalls of student debt reached a surprising conclusion: student debt helps the economy.
Wall Street Journal staffer Josh Mitchell says the report breaks debt holders into two group--graduates and drop outs. And the grads are doing OK.
They are among society’s highest earners, thanks in large part to the degrees that the debt financed. They’re well-positioned to buy homes, and they’re helping improve the nation’s productivity because they learned skills that employers need.
In fact, people with higher debt levels usually go to grad school and earn higher incomes.
Its [the report's] conclusion: “The main macroeconomic impact of student loans, particularly over the longer run, is via the boost to output and productivity form a more educated workforce.”