This article examines the $1.8 trillion student loan debt crisis affecting nearly 45 million Americans. It traces the problem to decades of state disinvestment in higher education and expanded federal loan availability, which incentivized institutions to become more tuition-dependent. The long-term economic consequences include declining homeownership among young adults, reduced consumer spending, decreased small business formation, delayed retirement savings, and postponed family formation. These impacts disproportionately affect Black, Hispanic, and female borrowers, with Federal Reserve Chairman Jerome Powell warning that growing student debt "could hold back the economy."
