why does student loans affect America ' economy?

Question

Can you please tell me, thanks

Answer 1

Student loans increase the number of students that can afford the high tuitions charges at state run schools. In the absents of such loans most states would probably raise taxes and lower tuition or even make it free like high school, because the nation needs an educated work force.

Answer 2

Student loans increase access to education, which increases human capital, which increases productivity, which increases ouput and standards of living.