Student loan debt is delaying life milestones for young Americans

"Threat level: That debt burden has led more than half of borrowers to delay life events, according to research from Gallup and the Lumina Foundation, which releasedtwo new reports Tuesday on perceptions of higher education. Gen Z was the most likely to say they'd put off at least one life event because of their student loan debt, with each older generation gradually less likely to say the same. Nearly a third (32%) of Baby Boomers said they delayed milestones due to student loan debt."

"Saving for retirement and going back to school were the most commonly delayed life events. But loans have also held people back from buying a home, purchasing a car and even getting married. Thirty-one percent of Zoomer borrowers say loans have held them back from buying a car, while 33% say it's blocked them from buying a home. Loans are posing yet another roadblock for new homebuyers, who are already spending a far higher share of their income on housing than existing homeowners, Axios' Emily Peck reports."

"Broadly, Gallup and Lumina's report on the reality of higher education, also out Tuesday, shows that Americans still recognize the value of higher education - but they also believe cost remains a significant barrier to attaining a degree. One in ten of those currently enrolled in college or certificate programs think all people have access to quality, affordable higher education, compared to just 6% who never enrolled in such programs after high school. "Americans have not lost faith in higher education," that report reads. "But faith alone will not close the gap between aspiration and attainment.""

More than half of borrowers delay life events because of student loan debt. Gen Z is most likely to postpone at least one milestone, while older generations are less likely to report similar delays. Saving for retirement and returning to school are among the most commonly delayed events. Student loans also hinder major purchases and family formation, including buying a car, buying a home, and getting married. Nearly a third of Baby Boomers report delaying milestones due to debt. Americans generally recognize the value of higher education, but cost is viewed as a significant barrier. Only a small share of people believe everyone has access to quality, affordable higher education, with higher agreement among those currently enrolled than among those who never enrolled after high school.

Read at Axios