By Carol Church, Writer, Family Album
Reviewed by Michael Gutter, PhD, Department of Family, Youth, and Community Sciences, University of Florida
It’s well known that earning a college degree increases lifetime earnings and broadens occupational opportunities. However, college costs have been rising substantially in recent years, leaving many with a heavy burden of loans. Plenty of young people also carry significant credit card debt.
Those in older generations may assume these young adults feel depressed or upset about this debt load. But intriguing research in the journal Social Science Research suggests this may not be the case.
More than 3000 young people, most of whom were in their early to mid 20s, were asked about their college loans and credit card debt. They also rated their feelings of self-esteem and daily mastery over their life—for instance, whether they felt proud of themselves and able to “do what they set their minds to” (Dwyer, McCloud, & Hodson, 2011, p. 732).
In fact, for many of these young adults, debt was actually linked to increased feelings of mastery and self-esteem. However, this was only true for youths from lower- and middle-class backgrounds. And once youths hit age 28, educational debt did begin to have negative effects on how people felt about themselves.
These researchers suggest that college loans and credit card purchasing power may make less advantaged young people feel successful and powerful–at least at first. However, as they may come to realize, debt can eventually make it hard to establish a financially stable family and obtain a home mortgage. These young adults face difficult choices as they balance the need to pay for a college education and the desire to spend on material goods with the goal of a secure financial future.
(Image Credit: UF/IFAS file photo.)
References:
Dwyer, R. E., McCloud, L., & Hodson, R. (2011). Youth debt, mastery, and self-esteem: Class-stratified effects of indebtedness on self-concept. Social Science Research, 40, 727-741. doi: 10.1016/j.ssresearch.2011.02.001
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