Debt surge could hit family budgets, student loans, and retirees

With the national debt nearing $40 trillion, economists warn persistent deficits will raise borrowing costs and affect everyday finances: higher student-loan payments, pricier mortgages, and potential Social Security cuts unless policy changes occur. The Conference Board’s analysis notes a 2028 incoming student with a $45,000 loan could owe about $279,000 (or roughly $466,000 in extreme rate conditions); a $600,000 home with 20% down could total around $2.89 million (rising to about $3.64 million in a shock scenario); and Social Security insolvency could occur by 2032 unless taxes rise or deficits shrink. Small-business lending would also face higher costs, and lawmakers have largely stalled on decisive action.