A crisis is emerging for millennials and it’s threatening to engulf their whole generation. Currently, 44 million Americans hold $1.53 trillion worth of student loan debt. That’s a lot! But what’s even scarier is the majority of that is from millennials. The amount they owe has just topped $1 trillion. This is new data according to the New York Federal Reserve Consumer Credit Panel.
42% of people aged 19 to 29 have student loan debt. The average debt payment for this age group is $393 per month. That’s just average, with just as many millennials paying more than that as there are paying less. For many, that’s a rent payment. Worse yet, they’re stuck paying that student loan debt for decades, unable to get ahead of it.
This crisis is changing the way millennials buy goods. Because student loan debt has sapped their budget, they can’t afford basic goods. They view buying a home, a car, and other major purchases less favorably than other generations. They’re even putting off getting health insurance, getting married, and starting a family. They simply can’t afford it.
Student Loan Debt Causing Economic Havoc
79% of young adults think that student loan debt is a major problem for the younger generations. They understand what’s going on, but still decide to go to college. 70% say financial circumstances led them to go to college. Chasing the American dream and finding a good career is why you go to school in the first place.
The problem is, student loan debt is making going to college almost not worth it. Many millennials are regretting going to school. They spend four years getting their degree and the next 10-20 paying off the loans. They end up not getting the good job they thought they would. Many even spend several years after graduation looking for work and taking fast food jobs just to survive.
Still, it’s not just millennials who are worried about the impact of student loan debt. The Federal Reserve is getting afraid as well. They released a quarterly report on household debt and found that student debt jumped by $79 billion in 2018 alone. These are scary numbers that are threatening to doom the economy.
http://financialhelpers.com/63-of-millennials-who-bought-a-house-have-this-regret/
Student loan debt is currently ranked #2 behind only mortgage debt. It’s more than credit card and auto loan debt. Considering how many people own cars and carry credit cards, this is a ridiculous amount of money owed! As it keeps growing, it will only serve to stunt the economy even further.
