Student Loan Debt

The economic principle I examined was  Institutions are the “rules of the game” that influence choices. There are many situations where Institutions can be applied to the real world. For instance, while studying how the U.S and other countries provide their students with the access to higher education, I found many examples of this principle. First, I studied how the recent increase in university attendance around the globe has made education more competitive and has directly impacted the way people approach economic milestones. This shows that around the world the value of education is becoming an essential factor to life, thus putting pressure on students to take out loans and pursue a higher education. Second, I studied the various countries and their student debt issues. The differing costs and methods seen around the world are demonstrating how their specific systems are influenced by their individual customs and culture. Third, I studied the variety, and the length of repayment systems. Again, the various costs, time, overall strictness of these systems are all influenced by their customs and economy. Overall the institutions that provide students with an education, and the institutions that lend them money, are influenced by customs and have an impact on the economy.