How Student-Loan Debt, or Not Having It, Shapes Lives

Without student loans, millions of Americans couldn’t afford the degrees that might smooth the road to prosperity. Yet, having student loans can also make it tougher to get far along that journey.

People who leave school without loans can have an easier time buying a home, saving for retirement or starting a business, compared with those who have student debt. One aim of President Biden’s student-debt relief plan, currently stalled by legal challenges, is to help borrowers shed debt and progress toward those goals, though critics argue the program is unfair to those who sacrificed to pay for college or pay down their debt.

Research from the Federal Reserve found that, between 2005 and 2014, there was a link between rising student debt and the reduced share of young adults who own a home. Carrying student debt is also associated with being less likely to start a small business, according to research from the Philadelphia Fed, and with being more likely to delay having children, according to researchers at Ohio State University.

Furthermore, college graduates with student debt have built up an average of about $9,000 in retirement assets by age 30—half as much as those without student debt, according to a 2018 study from the Center for Retirement Research at Boston College.

“Student debt is a new stratification system,” says Charlie Eaton, an associate professor of sociology at the University of California, Merced who studies economic disparities in higher education. “It confers a set of advantages at the end of college for people who are debt-free over people with student debt.”

Being debt-free isn’t itself a guarantee of prosperity, and even with student loans, Prof. Eaton says, “you’re probably mostly better off going to college, though that’s not true for everyone.”

It isn’t surprising that those without student debt often hit financial milestones sooner than borrowers do. Notably, these graduates say they also feel more freedom to take personal and professional risks or to pursue passions and alternate paths.

Skyler McKinley, a 30-year-old in Denver, says he wouldn’t have been able to accept his first job working for $34,000 a year if he had graduated with debt. That job, deputy director of a state agency in charge of Colorado’s then-novel regulations on recreational-marijuana sales, was instrumental in launching his career, he says.

“I graduated with so much more freedom because there were no bills that came due,” says Mr. McKinley, who now works in communications at a national consumer group. He funded his education at American University through survivors’ benefits from his late father’s job as a state judge and a merit scholarship.

Mr. McKinley says that being debt-free put him in a better position, financially and psychologically, to take out loans to buy a condo in Denver for about $300,000 in 2018 and a bar for a similar amount last year.

Owning a bar was a long-held dream, though the Oak Creek Tavern only breaks even, Mr. McKinley says. “I wouldn’t have taken that risk if I was also servicing and paying debt,” he says.

The majority of recent four-year college graduates took on at least some student debt. For the class of 2021, 46% of bachelor’s degree recipients had none, according to the College Board, a nonprofit. Among Americans with a bachelor’s degree, 64% of those who didn’t take on student debt report their financial status as “living comfortably,” while 36% of those who currently hold debt say the same, according to a Fed survey.

The median monthly student-loan bill is between $200 and $299, according to data from the Fed, and many borrowers pay significantly more. In 2021, 12% of debt holders were behind on their payments, according to Fed data, and the rate was higher for Black and Hispanic borrowers, who Prof. Eaton notes face disadvantages in the labor market and tend to come from less family wealth.

Some critics of Mr. Biden’s plan argue that student-debt relief unfairly favours some well-paid college graduates over Americans without a college degree, who might be more financially insecure. Republican Sen. Mitch McConnell has called the plan “a slap in the face to every family who sacrificed to save for college, every graduate who paid their debt, and every American who chose a certain career path or volunteered to serve in our Armed Forces in order to avoid taking on debt.”

Whether or not a college student takes on debt comes down to family finances, academic achievement and, sometimes, chance. Those whose parents can afford to pay full tuition might also benefit into adulthood from having a financial safety net and family connections.

Rachel Romer, co-founder and chief executive of Guild Education, has seen firsthand the difference it makes to not have student loans. In what she calls an “A/B test on affordable education,” one side of her family—21 of her siblings and cousins, plus Ms. Romer—had their college tuition paid with money from a family business started by her grandfather, while the other side—20 cousins—didn’t have shared wealth to draw on.

This family history served as an inspiration for her to start Guild, a platform for employers to provide education benefits to workers that can be accessed debt-free. Ms. Romer, 34, says that having a family that could afford to put her through Stanford University gave her the financial freedom to attend business school and start her company at age 26.

Emerging from college without debt can also give some graduates the space to map out alternative paths after college.

Since Frank Teng graduated in 2013, one guiding question when he is faced with a big decision has been, “What would make for a better story?” Mr. Teng, a 31-year-old user-experience designer in Houston, received a full scholarship from Yale University after being connected with the school by QuestBridge, a nonprofit that matches colleges and low-income applicants.

With no loans, he was more comfortable putting money toward a mid-college gap year backpacking in Southeast Asia, therapy in his late 20s and a monthlong wilderness-survival training earlier this year. If he had amassed debt, he says his pursuit of a good story would have been less of a priority than paying off all his loans.

Art can transform more than just walls—it shapes mood, evokes memory, and elevates the everyday. Discover how thoughtfully curated interiors can become living expressions of personal meaning and refined luxury, from sculptural furniture to bespoke murals.

Artful Abundance: The Sophisticated Joy of Artful Interiors

Imagine a hushed hospital corridor, its sterile walls awash in the glow of flickering fluorescent lights. In that unexpected moment, a solitary Monet painting emerged—a luminous tableau of delicate lilies dancing in quiet defiance.

As the clinical austerity yielded to the graceful presence of art, this single work transformed into a vessel of solace and hope amid overwhelming uncertainty.

That moment continues to resonate with me—a vivid reminder that art transcends mere aesthetics to become a profound catalyst for emotional healing and inspiration. It is this transformative experience that fuels my passion as a biophilic interior designer.

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2. Art as Wellness: A Daily Ritual of Rejuvenation

At its core, art is a daily ritual that renews both mind and spirit. Scientific research consistently confirms that nature-inspired art reduces stress, lowers blood pressure, and kindles creativity.

The simple act of beholding a tranquil landscape or a subtle floral motif transforms your space into a private retreat, offering solace amidst a hectic world.

In my practice, I meticulously select artworks chosen not only for their aesthetic appeal but also for their potent, therapeutic benefits.

Each piece serves as daily inspiration—a quiet invitation to experience calm and well-being. For example, our Hilton project demonstrates how hospitality resorts integrate nature-inspired art not only for its visual impact but also as a medium of healing; here, a collaboration with a local artist produced a masterful installation that functions both as a statement piece and a source of well-being.

3. Bespoke Brilliance: Celebrating Your Unique Narrative

Luxury design is profoundly personal. Bespoke art transcends mass-produced décor by capturing your unique story—whether through a custom mural reminiscent of your favourite botanical garden or silk wallpapers that evoke the allure of exotic landscapes.

Each personalised creation turns your walls into a living narrative of cherished memories and distinctive taste. Consider how a thoughtfully designed space can reflect your individuality and elevate your living experience.

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Art is not confined to two dimensions. Three-dimensional sculptural works bring vitality to interiors by adding depth, texture, and tactile allure.

Picture a gracefully sculpted piece—a marble table echoing the gentle rhythm of ocean waves or a repurposed bronze branch serving as an elegant room divider.

Such statement sculptures command attention while seamlessly integrating form with function and providing a natural conversation starter in any refined space.

5. Architectural Artistry: When Structure Meets Art

A truly sophisticated home elegantly merges art with architecture. Imagine a residence where bespoke staircases curve with elegance, where hand-carved wooden doors evoke the intricate beauty of nature, and where expansive windows frame breathtaking vistas.

In these spaces, every architectural detail contributes to a cohesive canvas of artistic expression. As you envision your own home, consider how your surroundings can be thoughtfully designed to reflect both beauty and purpose.

6. Furniture as Functional Art: Merging Practicality with Mastery

In luxury interiors, even the functional becomes exceptional through artful design. Consider a one-of-a-kind, hand-carved pink marble swivel chair—a masterpiece where practicality meets refined craftsmanship.

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7. Digital Sophistication: The Future of Artistic Expression

In an age defined by rapid technological advancement, digital art installations offer a contemporary twist on traditional forms.

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8. Luxurious Textiles and Furnishings: The Essence of Understated Elegance

Luxury is often revealed in the details: the textures, colours, and fabrics that together create a haven of understated splendour.

Bespoke silk cushions with intricate botanical embroidery, sumptuous velvet throws that evoke tropical charm, and bedding that mirrors the ethereal beauty of cloudscapes all contribute to an atmosphere of refined elegance and comfort.

Every tactile detail is chosen to evoke warmth and stand as a testament to your taste for excellence.

9. Refined Heritage: Honouring Timeless Craftsmanship

In the realm of luxury, tradition and modernity exist in perfect harmony. Integrating timeless antiques—such as a rare Vladimir Kagan couch or a coveted Hans Wegner chair—with contemporary design creates a dialogue that honours both heritage and innovation.

These storied pieces carry with them a legacy of masterful craftsmanship, adding layers of significance and depth to your living environment. They remind us that true elegance is built upon a foundation of enduring quality.

10. The Art of Personal Meaning: Crafting Your Legacy

Ultimately, art is the language through which you express your unique legacy.

Every carefully chosen piece reflects a part of your personal journey, turning your living space into a narrative as emotionally resonant as it is visually stunning.

It imbues your environment with memories, aspirations, and the essence of who you are—a living masterpiece that evolves with time.

Reflect on how these elements might not only beautify your home but also stand as timeless expressions of your personal story.

Now is the moment to immerse yourself fully in the joy of art. Elevate your surroundings and transform your residence into your greatest masterpiece.

Your heart, your legacy, and your space deserve nothing less than extraordinary artistry.

Ozge Fettahlioglu is the founder of Cocoplum | Biophilic Design Studio and Boxareno | Custom Modular Constructions. A wellness and biophilic design leader, she creates bespoke spaces that inspire, heal, and elevate daily living. Ozge is also a board member of Biophilic Cities Australia.