Millennials Delaying Milestones Thanks to Student Debt
Millennials are delaying major life events because of their education debt.
A new survey from Bankrate.com showed that 56 percent of millennials were delaying at least one major event because of current or past student loans.
"Buying a home, buying a car, getting married, having children and saving for retirement - in four of those five areas, millennials were the top group that were delaying a life event," said Steve Pounds, a financial analyst at Bankrate.com.
This is not just a problem for millennials though. In fact, 43 percent of older adults said that their education debt has caused them to delay major life events, according to the study.
"Student debt is often portrayed strictly as a millennial issue, but the truth is that Americans of all ages have put their lives on hold due to student debt," Pounds said, who added that delaying life's major events also has a negative impact on the overall economy.
Another major problem millennials face is that while the cost of education is rising exponentially, starting salaries remain stagnant.
"The average student loan balance has more than doubled, while the salary that college grads are getting just out of college has remained essentially flat," Pounds said.
More than any other age group, millennials claim that they did not receive enough information or advice about the financial risks of loans for their education.
"Sixty-six percent of our millennials said that they weren't given enough advice about the risks of student loans," Pounds said. "Many students who take on educational loans are young and have never had any major debt," Pounds said.
While student loan debt has hit millennials hardest in terms of delaying major life events, the survey found that just 28 percent of them have ever had student loan debt, compared to 41 percent of those between 30 to 49 years old.
In order to keep track of credit scores and plan for future financial goals, consumers can use the free debt management calculator at myBankrate.com to develop a payment plan.