In her recent show on CNBC, Suze Orman mentioned that student loan debt is the biggest threat to our economy — a sentiment that is shared by many others across the country. Students are reeling under $1.2 trillion of debt, which combines the 10 million federal and private student loans taken out annually.

An Oct. 16 report released by the Consumer Financial Protection Bureau (CFPB) reveals a 38 percent increase in private student loan complaints in just one year. In another report released by the TransUnion, a dangerous financial picture has come to the forefront. It shows that student loan debt has increased by more than 150 percent since 2005 a figure that has actually tripled over the last decade.

While inflation is one of the core reasons for this conundrum, it is not the only villain. Steep student loan interest rates are doing nothing to even out the financial problems faced by millennials today. By the time they are finishing college, they walk out with degrees, but they are also burdened with debts and face a dismal market for jobs ahead.

If the trend continues, then President Barack Obama's 2020 vision for 100 percent higher education may not see the light after all. Obviously, a serious review needs to be done regarding the interest rates, which according to the CFPB report leads to higher payouts in shorter time for these young adults than one would face for 30-year fixed-rate mortgage.

What most people probably don't realize is that this will impact us all and not just the students. Faced with job uncertainties, and often forced to realign their career choices with what's available, millennials are not in a position to take care of their debts without lasting scars. Their ability to invest in property and lack of disposable income will impact consumption big time.

A consumer-based economy can't be expected to survive this growing imbalance unless steps are taken to correct it right away. The government cutting back on education spending in such a scenario is hardly conducive to national welfare.

There is going to be a ripple effect, and everyone is going to face consequences. A study conducted by the Federal Reserve in August shows that increasing student debt is going to cost the housing industry $83 billion in sales this year. Retail industry losses are not too far behind either.

These are serious considerations and need some serious actions to counter the problem. Earlier this year, Obama delivered executive mandate on student loan relief, which opens up the current income-based repayment program and is expected to bring much-awaited relief for the debt-burdened young adult population.

Detractors have argued that this move could increase the taxpayers' burden, but in view of the overall long term good that it can do, this will probably be evened out. As their debts ease, millennials will get to save more and eventually cough up more disposable income. Increasing their spending power will boost economic activity, and their money will be injected back into the economy.

But that is not all, of course. Government spending for higher education also has to increase proportionately. Data released by the Organisation for Economic Co-operation and Development (OECD) show how government spending on students is affecting its return on investment for the entire economy.

Though it is still a world leader in overall education spending, the U.S. has cut back on education spending, which in turn has negatively impacted its education levels along with social and economic progress. The sobering report shows that only 30 percent of U.S. adults have actually surpassed their parents' education and knowledge levels, a rather depressing lack of education mobility.

This is a trend that can be dangerous for a nation's progress.