Besides the ongoing pandemic and the rise in inflation, the average US citizen is also burdened by overwhelming student loan debt. In fact, the latest stats show that the total student loan debt in Q1 2021 reached a record-high $1.73 trillion.
As a result of these increasing student loans, 81% of Americans had to postpone major life milestones, like paying off other loans, investing their money, or buying a house.
To be more precise, 44% of Americans under 35 postponed their plans to buy a home and invest their money, 46% of Americans aged between 35 and 64 had to delay paying off other loans, and 42% had to reschedule their retirement savings.
In addition to that, Americans also had to delay traveling (35%), having a baby (16%), getting married (14%), and finding a new job (12%).
Regarding private student loans, the situation is even more alarming. Namely, private student loans will most likely make up about 8% (more than $131 billion) of all outstanding student loan debt.
On top of that, more than half of Americans (namely, 54%) with student loans, believe taking on debt was not worth it.
On a more positive note, 57% of people who completed a four-year degree and 55% of those with a Master’s/PhD believe it was worth investing their money in education.
To summarize, 68% of Americans are currently dealing with debts, including:
- credit card debts — 35%
- car loans — 35%
- mortgage loans — 32%
- federal student loan debts — 15%
- medical debts — 12%
- private student loan debts — 6%