Student loan debt is having a profound impact on the daily lives and spending habits of young Americans, casting a pall over the nation’s economic recovery. Many borrowers may never run into problems with their loans, but the mere existence of the debt is a burden that is impacting the way student borrowers make important lifestyle decisions. A survey recently conducted by American Student Assistance® (ASA) found that those with student debt are delaying decisions to buy a home, get married, have children, save for retirement, and enter a desired career field because of their debt. This downward spiral has a cascading impact on the nation’s economy as the generation charged with investing in the nation’s future is delaying their lives because of student debt.
Student loans were created to be an engine for social mobility, but they are, in fact, limiting young people’s ability to achieve financial success:
• 27% of respondents to ASA’s survey said that they found it difficult to buy daily necessities because of their student loans;
• 63% said their debt affected their ability to make larger purchases such as a car;
• 73% said they have put off saving for retirement or other investments; and
• The vast majority—75%—indicated that student loan debt affected their decision or ability to purchase a home
Survey respondents indicated that in addition to limiting their ability to make major purchases,student loan debt also impacts their important life decisions read more….