60% of Millennials now say they expect to be making payments well into their 40s
How can Millennials ever think about getting a home loan when they are already drowning in debt from their student loans?
Research reveals that most recent college graduates carrying student loans have grossly underestimated the burden they would face, with monthly payments that are so substantial that they impact nearly every aspect of Millennial life.
In the study fielded by Citizens Bank, Millennials with student loans say they are now are spending nearly one-fifth (18%) of their current salaries on student loan payments.
60% of Millennials now say they expect to be making payments well into their 40s.
The study found graduates with student loans grappling with the trade-offs required to make their student loan payments every month:
- 54% have limited their travel
- 50% have limited their shopping for clothes, shoes and accessories
- 46% have limited their spending on entertainment and social events
- 45% have limited their spending on eating out
- 40% have limited the amount they can spend on rent or mortgage payments
“The long-term cost of college continues to be a major challenge for Millennials, even after they have established themselves in the workforce and significantly improved their credit from where they were when they started school,” said Brendan Coughlin…