By Earlene Greene
- 45% of borrowers with student loan debts reportedly struggling financially
- At least 36% of young adults are unable to enter the housing market due to high levels of student loan debt
Millennials and Gen Zs are feeling the growing burden of student loan debt, which is blocking their path to major financial goals like buying a home, starting a family, or saving for retirement. According to Forbes Advisor, 45% of borrowers are struggling financially, and 36% are delaying career plans and homeownership as they grapple with the long-lasting effects of debt. This mounting debt has turned student loans into a hidden roadblock, forcing many to defer their dreams of homeownership and long-term stability.
Why This Matters: The growing burden of student loan debt is significantly delaying key life events for millions of Americans. Gallup reported that 71% of student loan borrowers postponing major milestones such as homeownership, career advancements, and family planning. Homeownership, a critical driver of economic growth and stability, has been particularly affected. With the rate declining to 65.7%, down from its 2004 peak of 69.2%, student loans are reshaping young adults’ life trajectories, making it difficult for them to invest in homes or other ventures.
The personal and economic impacts are far-reaching which has a significant impact on market stability and long-term economic growth. Student loan debt isn’t just holding people back from buying homes and starting businesses; it’s also slowing down the economy. When fewer people are able to make big investments, industries like construction and banking feel the pinch, affecting overall economic health. This financial strain is not only reshaping personal futures but also altering the broader economy.
Situational Awareness: Owning a home has historically been a key pathway to build wealth in the U.S. However, with the burden of student loan debt and the cost of higher education, this pathway has become increasingly challenging. The system is broken and exploited, and it needs to be fixed to ensure fair access and opportunities for all. Addressing the root causes of inequality is a good starting point.
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