Student loans in the United States

Student loans in the United States are a form of financial aid that must be repaid, in contrast to other forms of financial aid such as scholarships and grants. Student loans play a very large role in U.S. higher education.[1] Nearly 20 million Americans attend college each year. Of that 20 million, close to 12 million – or 60% - borrow annually to help cover costs. In Europe, higher education is more highly subsidized for students and funded by the government.[2] In parts of Asia and Latin America most post secondary education is still private with little funding from the governments.[2] However, in the U.S., much of college is funded by students and their families with public institutions being funded in part through state and local taxation, and both private and public institutions through additional gifts from donors and alumni.[2][3] Some believe this substantially increases intergenerational correlations in income, although other transmissions including genetics, work ethic, and preferences for work versus leisure have been shown to play a larger combined role in some studies.

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