Student loans are ballooning larger and larger every single year, with young Americans being saddled with a heavier burden than ever before when they finally achieve their degree. The state of student loan debt has gotten so bad in this country that there are some who question whether the degree is even worth it any more, especially considering the lack of decent-paying, full-time jobs available for college graduates compared to years passed.
Consider some of these statistics for student loan debt in the United States:
- The median net worth of households with heads of house younger than 40 differs vastly between people with and without student debt. For those without student debt, they are valued at an average of $64,700, seven times greater than those with student debt, who have a net worth of only $8,700 on average.
- It’s also interesting to compare net worth of people who are and are not college educated. People who are not college educated with no loan debt are worth nine times more on average ($10,900) than those with loan debt ($1,200).
- Young people with student loan debts are also significantly more likely to have car loan and credit card debt. About 43 percent of those with student debt also have vehicle debt, compared to 27 without, and about 60 percent of those with student debt have credit card debt, compared to 39 without. This demonstrates the effect student loan debt can have on other areas of personal finance.
- Finally, the median total indebtedness of college educated households with student loan debt has reached astronomical levels. Educated households with student loans are, on average, in debt a total of $137,010, compared to $73,250 for those without student loan debt. People who do not have a college education but have student loan debt are $28,300 in debt on average, compared to $2,500 for those without a college education or student debt.
The good news is there are still ways you can plan for your future while getting yourself through paying your student loans. Contact the team at Money Mastery for assistance in your financial planning.
