BACK

svetikd/ E+/ Getty Images

Research and Statistics

Student loan debt has ripple effect throughout young adults’ financial lives

A new survey shows more than half of respondents age 18-39 have maxed out their credit lines due to student loan debt

Summary

Student loan payments don’t just make it hard to make ends meet month-to-month. They’re also having a significant impact on young adults’ financial health over the long haul, according to a survey by TD Bank.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

Student loan payments don’t just make it hard to make ends meet month-to-month. They’re also having a significant impact on young adults’ financial health over the long haul, according to a survey by TD Bank.

Among U.S. survey respondents age 18-39 who attended higher education, the average student loan balance was about $26,500, with an average monthly debt payment of $579. That loan payment represents more than 20 percent of the average take-home pay.

So it’s no wonder student loan holders are seeing a negative ripple effect in other areas of their financial life, some of which could have long-lasting impacts. For instance, more than half say that because of student loan debt, they have maxed out their credit lines (54 percent).

See related:  Pros and cons of paying your student loans with credit cards

In addition to taking on more debt, they’re also foregoing saving. About 4 in 10 say they have put off contributing to a 401(k) (41 percent), and 20 percent say they save none of their take-home pay each month.

To cut back, 6 in 10 reported they do not take vacations, and about a third each say they are dining out less often or are delaying buying a home (35 percent and 36 percent, respectively). Starting a family is also being put on the backburner by about a quarter of respondents (26 percent).

TD Bank’s Student Debt Impact Survey was conducted by research company Maru/Matchbox among a nationally representative sample of 1,001 American panelists, aged 18-39, who pursued higher education. The survey was fielded in mid-to-late June 2019, with results released Aug. 8.

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

What’s up next?

In Research and Statistics

10 things newlyweds need to know (about credit)

While advice like “never go to bed angry” and “always make time for each other” are great tips for newlyweds, credit should also be part of that conversation. These credit tips will help newlyweds steer into their shared lives as they make smart credit decisions together.

See more stories
Credit Card Rate Report Updated: November 25th, 2020
Business
13.91%
Airline
15.50%
Cash Back
15.85%
Reward
15.75%
Student
16.12%

Questions or comments?

Contact us

Editorial corrections policies

Learn more