Students Loan Debt. Education Research Paper Essay

Student’s Name
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Student Loan Debt
The availability of student loans has transformed the consumption of tertiary education in the United States and around the world; thus, affording students greater access to higher education, regardless of their background. Access to quality education has proven to be a vital element in securing financial stability and maintaining a decent livelihood through elevated knowledge levels and the acquisition of innovative and entrepreneurial skills. The increasing demand for higher education has also resulted in increases in the cost of tuition as well as the student loan debt. While many negative attributes are assigned to student loan debt, several important factors, including increased graduation rates, and higher enrollment percentage of students from low-income and minority, confirm its significance.
Student loan debt finances the training and education needed by future workers to advance their careers. Popov notes that student financial aid equips students with the necessary education and job training, thus impacting the essential skills towards more advanced careers (77). Goodell concurs, adding that student loan debt is a form of financing that invests in a more substantial present value of future earnings (174). Therefore, student loan debt increases the number of opportunities available to people by being able to access higher education and, hence, affecting changes in the distribution of their income.
Access to financing is a crucial determinant of economic growth. According to Goodell, getting a student loan debt to access higher education to obtain the necessary labor-market training is critical for the economic growth of society (174). Besides, there is a strong positive correlation between economic growth and participating in higher education today than ever before (Goodell 174; Benos and Zotou 669). Further, human capital, defined as the population share of the workforce with higher education, has a significant positive association with economic growth. For instance, Cuaresma et al. note that an increase in 10 percent in human capital attributes to 0.6 percent of the annual growth rate of gross domestic product per capita (46). The positive impact of the population share of workers with higher education, thanks to the student loan debt, is a robust determinant of economic growth in the United States and globally.
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