The Pew Research Center has just issued a report called Young Adults, Student Debt and Economic Well-Being. Among other things, it finds that
Student debt burdens are weighing on the economic fortunes of younger Americans, as households headed by young adults owing student debt lag far behind their peers in terms of wealth accumulation, according to a new Pew Research Center analysis of government data. About four-in-ten U.S. households (37%) headed by an adult younger than 40 currently have some student debt—the highest share on record, with the median outstanding student debt load standing at about $13,000.
Read the whole report, and note what Pew calls its 5 key findings on student debt:
1 – College-educated households with student loans to repay have a lower net worth than those with no student debt.
2 – While taking on debt to finance a college education is associated with lower net worth, it doesn’t seem to have an impact on income.
3 – Young households with student debt are much more likely to have car loans and credit card debt, too.
4 – Debts are growing for households that have student loans to repay.
5 – Young households that borrowed for college are less satisfied with their personal financial situation than those who didn’t and are less likely to say their education has paid off.
Check out a couple of Pew's illustrative charts:
Click on the chart below to enlarge it.
