Student Loan Debt Prevents Young Americans from Saving for Retirement and Pursuing Other Financial Goals
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 debt
(Boston, MA) – August 08, 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.”
However, it isn’t just young Americans who are feeling the burden of student loan debt. Of the 241 consumers polled, 21 percent of the respondents were aged 33-40, while 39 percent of respondents were aged 41-55.
The student loan debt poll was the latest in a series of ACCC web surveys for 2012 that focus on a variety of financial education, budgeting and planning topics. American Consumer Credit Counseling’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability.
ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
For credit counseling, call 800-769-3571
For bankruptcy counseling. call 866-826-6924
For housing counseling, call 866-826-7180
For more information on financial education workshops in New England, call 800-769-3571 x708
Or visit us online at ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.