Student loan debt, like all forms of debt, can influence various decisions such as starting a family, buying a house, and retiring. Since children are one of the largest expenses one can have, many people wait to start a family until they are financially stable. This is one of the reasons why the average age of first time mothers has increased from 21.4 years in 1970 to 25.6 years in 2011, according to the National Vital Statistics Report released by the Centers for Disease Control and Prevention (CDC) (Martin, Hamilton, Ventura, Osterman, & Matthews). In addition to couples having children at older ages, smaller families are becoming more common. American women are producing a historically low rate of 1.9 children during …show more content…
As stated by the chief economist at the National Association of Realtor, this can be partially explained by the fact that many mortgage lenders refuse to give out large loans to individuals with large debt obligations, such as those resulting from student loans (Holland). After college graduation, some young adults choose to move back in with their parents to avoid having to pay rent and other expenses. Approximately 36% of Americans aged 18 to 31 were living with their parents in 2012 (Fry). Because the housing market accounts for approximately 15% of the total economic activity in America, postponing homeownership directly creates negative economic consequences (“Social Benefits of Homeownership and Stable Housing ”). Residential investment, which includes construction of single and multi-family structures, residential remodeling, and production of manufactured homes, specifically comprises about 5% of America’s overall national gross domestic product (GDP) (Greiner). GDP, the total dollar value of all goods and services produced over a specific period of time, was 17.4 trillion dollars in the United States in 2014; therefore, residential investments make up approximately 870 billion dollars (“GDP at Market Prices”). As the amount of young Americans who live with their parents increases, the amount of people that buy a home decreases. Similarly, less residential investments are being made. This costs the United States millions of dollars and has the potential to threaten the country’s economic well