Outstanding student load debt has reached $1.6 trillion.\u00a0 Both presidential candidates have proposed limited student loan forgiveness.\u00a0 Benefits Pro published an article that analyzes student dept. (1)<\/p>\n
Among those with student loans, the average loan amount is $24,155. (2) Considering that the average worker with a bachelor\u2019s degree earns $24,000 more per year than the average worker with a high school diploma, (3) then the average loan amount is reasonable and manageable.\u00a0 The problem is with the outliers, those who have above average debt and\/or below average income.<\/p>\n
The lack of financial knowledge and understanding is another problem for some students.\u00a0 Forty-two percent of participants in a study said they would not take a student loan if given a chance to rethink their decision.\u00a0 That could mean that they didn\u2019t have enough information about how loans work, or they don\u2019t have the financial discipline to manage loan repayments.<\/p>\n
Interestingly, the youngest generation (Gen Z) holds least amount of student dept ($15,798) and is most optimistic about paying off the debt.\u00a0 The next generation group (Millennials) hold an average debt of $21,367 and Gen X holds an average of $34,075.<\/p>\n
50% expect to pay off their loans within 5 years and only 11% expect to pay of loans after 20 years.<\/p>\n
Some get help from family to pay off debt. Parents helped 31% of Gen Z and 19% of Millennial pay off debt and spouses helped 25% of Gen Xers and 22% of Millennials pay off debt.<\/p>\n
(1) https:\/\/www.benefitspro.com\/2020\/06\/29\/americans-with-student-debt-owe-24155-on-average-412-100295\/<\/a><\/p>\n (2) Other sources indicate a higher average loan amount.\u00a0 For example, Forbes indicates an average student load debt of $32,731. https:\/\/www.forbes.com\/sites\/zackfriedman\/2020\/02\/03\/student-loan-debt-statistics\/?sh=592b1537281f<\/a><\/p>\n