Impact of student debt

According to Consumer Reports (August 2016), the impact of student debt can be devastating.

  • More than 70% of college graduates leave school with debt.
  • The average amount of student loans per graduate is $37,000 (not including credit card debt which is about $3,000). US News and World Report (2017) wrote a great article on "Finding the right credit card and learning how to improve your credit score." which will help you better understand how your choices today impact your options tomorrow.
  • 45% of people with student loan debt said that college was not worth the cost.
  • Of those who said college wasn't worth it, 38% didn't graduate, 69% have had trouble making loan payments, 78% earn less than $50,000 per year, and 43% didn't get help from parents making financial aid decisions.
  • 47% said that, "If they had to do it over again, they would accepts less financial aid."  That means they's have to go to a cheaper school or find another way to finance it. 
  • When asked, "Would you want to know how much student debt a person had before you begin a serious relationship?" 44% said, "Yes," 20% said, "Unsure," and 36% said, "No."
  • More than have surveyed said they were having problems making payments on student loans.

The Impact of debt

  • 44% cut back on day-to-day living expenses,
  • 37% delayed saving for retirement or other financial goals,
  • 28% delayed buying a house,
  • 12% delayed marriage, and
  • 14% changed careers as a result of student debt.