Final answer:
It is true that federal student loans have limits, often necessitating additional private loans. Rising college tuition and average debt at graduation underline the financial strain on graduates. This economic burden can significantly impact major life decisions and career choices.
Step-by-step explanation:
It is true that there are limits on how much a student can borrow through federal student loans, which leads many to seek additional funding through private loans from financial institutions.
The Obama administration worked to increase accessibility to higher education by raising the amount available through the Pell Grant Program, and by negotiating with Congress to lower interest rates on student loans in 2013.
However, with college tuition increasing by roughly 2-3 percent per year and average student loan debt at graduation around $29,000, it's not uncommon for graduates to have to delay major life decisions in order to manage their loan payments.
Every year, millions turn to the process of student loans to fund their education. This starts by getting a "place in line" for available funds through applying, typically beginning with federal student loans. Once the federal loan limits are reached, the demand for financial capital shifts towards private institutions to cover additional costs.
Given the increase in college tuition rates and rising student debt concern, many graduates face the prospect of repaying their loans with limited economic means, perhaps even returning to their parents' homes, creating a generation known as the boomerang generation. These economic constraints can certainly affect career choices and life decisions for the foreseeable future.