ACCC surveys of budget-conscious Americans finds that consumers aged 25 to 32 are unable to purchase a home and save for retirement because of overwhelming student loan deb
Boston, MA – August 8, 2012
Most young Americans are delaying major financial milestones in order to manage their student loan debt, according to a recent web survey by American Consumer Credit Counseling. Over 35 percent of respondents reported that they have had to delay saving for retirement because of their student debt, while 27 percent also reported that their ability to buy a car has been impacted, and 29 percent said it has affected their ability to buy a house. Nine percent of respondents said student loan debt has even impacted their ability to get married. Of the more than 240 respondents, 35 percent were aged 25- 32.
“Student loan debt is a tremendous burden on America’s young consumers, and the problem is only escalating,” said Steve Trumble, president and CEO of Newton-Based American Consumer Credit Counseling. “When people are unable to start saving in early adulthood because of large student debt payments, it can dramatically alter the course of their lives and impact future financial decisions. Young consumers are now waiting longer to buy homes, get married, have children, and, eventually, retire.”
Financial experts are growing increasingly worried about the impact that student loan debt will have on future generations of Americans. This year, for the first time, total student loan debt in the United States surpassed $1 trillion.
“It’s not just individual lives that are affected,” Trumble said. “It’s a drag on the entire economy. Too many 20- and 30-somethings are stuck paying off their creditors instead of buying their first home or saving for retirement.”