Student loan has become one of the largest categories of consumer debt in many countries. While other forms of debt declined after the Great Recession, student-loan debt has continued to grow. Many people in developed and developing countries owe their governments money burrowed to fund their higher education. The loan burden has made harder for millions of people to make ends meet.
The problem of student loans is the result of purposeful policies by and on behalf of people who profit from such loans. Although student loans give many people access to college and university education, they retain a system in which higher education institutions funnel money from taxpayers and students into the pockets of college administrators, private and semipublic institutions, and banks. The policy-makers who help to create this system and maintain it get significant contributions from the individuals and institutions that profit from it.
Student-loan debt mirrors the inequalities that exist in the society. Poor people and young people are more likely to take student-loans. Paying back principal and interest of this debt contributes to poor people falling further behind richer individuals who are less likely to have debt.