1. 8/2/2013 Nicole Murdock Sociology 1010 E-portfolio Summer 2013

2. 8/2/2013 The Ripple Effect — According to the American Institute of CPAs, 39 million adults had student loan debt at the end of 2012. — According to the Institute for College Access and Success, the average student loan debt in 2011 was approximately $26, 500. — High student loan debt is having a ripple effect on the economy. It has affected the housing market, credit scores, retirement security and marriages.

3. 8/2/2013 The Housing Market — First time home buyers are an important factor to stabilizing the housing market. — According to the National Association of Realtors, first time home buyers usually buy 40% of homes. In May 2013, this percentage dropped to 28%. — Student loan debt is preventing first time home buyers to put in money for a down payment since all of their money is going towards paying off student loans.

4. 8/2/2013 Credit Scores — High amounts of student loan debt decrease credit scores. — According to a research study by Equifax, the average credit score for 25 year olds without student loan debt was 15 points higher than student loan borrowers. — Low credit scores prevent college students to take out loans for a house and a car which affects the whole economy.

5. 8/2/2013 Retirement Security — Student loan debt has affected people of all ages. — According to a 2010 Survey of Consumer Finances, 29% of families headed by someone between the ages of 55 to 64 have student loan debt. 13.3% of families headed by someone between the ages of 65 to 74 have student loan debt. — Having student loan debt at an older age threatens retirement security. It becomes difficult to save for retirement and pay off loans at the same time.

6. 8/2/2013 Collapsing Marriages — Many college students are postponing marriage with the risk of taking on the spouse’s debt. — According to a study done in Utah State University, married couples who argued over finances once a week were 30% more likely to divorce than other married couples. — Numerous research studies have cited finance as one of the main reasons for divorce.

7. 8/2/2013 Congress Gets Involved — Student loan rates has been a heated topic in Congress. — On July 1, 2013, subsidized Stafford loan rates doubled from 3.4% to 6.8% after Congress couldn’t come to an agreement. — On July 31, 2013, Congress passed a bill that would give undergraduates an interest rate of 3.9%, graduates an interest rate of 5.4% and parents of students an interest rate of 6.4%. President Obama is expected to sign the bill. — The interest rates of students loans is expected to increase as the economy improves.

8. 8/2/2013 The Future for College Students and the Economy — The action taken by Congress to lower the interest rate on student loans is a good first step to helping the student loan crisis. However, more action has to be done. — Some examples of continuing to improve the student loan crisis are teaching financial literacy to high students so they become prepared for college and private organizations offering to pay college tuition in return for their employment in their organization. — As many problems as this debt causes, people should be able to work on solutions to improve the situation.

9. 8/2/2013 References Bidwell, Allie. "Congress Approves Student Loan Deal." Usnew.com. U.S. News & World Report, 1 Aug. 2013. Goard, Alyssa. "Interest Rates Double on Subsidized Loans." Nbcbayarea.com. NBCUniversial Media, LLC, 1 July 2013. Web. Harwell, Drew. "Debt Shuts Students out of Housing Market." Telegram.com. Worcester Telegram & Gazette, 22 July 2013. Web. Lewin, Tamar. "Student-Loan Borrowers Average $26,500 in Debt." Nytimes.com. The New York Times Company, 18 Oct. 2012. Web. Merling, Devon. "For Young People, Student Debt Delaying Milestones." Deseretnews.com. Deseret News Publishing Company, 21 July 2013. Web. Rampell, Catherine. "Money Fights Predict Divorce Rates." Nytimes.com. The New York Times Company, 7 Dec. 2009. Web. Ritter, Dan. "Are Student Loans a Headwind for the Housing Market?" Wallstcheatsheet.com. Wall St. Cheat Sheet, 26 July 2013. Web. "Student Loan Debt Taking Tolls on Marriage." Miami.cbslocal.com. CBS Local Media, 12 July 2013. Web. Valenti, Joe, Sarah Edelman, and Tobin Van Ostern. "Student-Loan Debt Has a Rippling Negative Effect on the Broader Economy." Americanprogress.org. Center for American Progress, 10 Apr. 2013. Web.