Student loan debt statistics. Oh boy. This one hits home for me. Student loans are something that millions of Americans struggle with. Myself included. Student loans used to be that high school underclassmen who annoys the seniors in the halls between classes. But now they have grown into the football star who beats up and bullies the other kids and steals their lunch money.
So today, let’s look at how student loans are affecting people in their day-to-day life as well as how student loans are affecting the economy as a whole.
(1) How Student Loans Compare to Other Types of Debts
We all know that student loans are a big deal. We know that they have become a bigger and bigger problem in society today as well. But it’s easy to throw out numbers like $1.6 trillion, which is the total student loan indebtedness in the United States.
We all know that is a huge number. But it’s hard to really comprehend how large that number really is. Most of us will never have $1.6 trillion in our bank account or 401k. So we don’t fully understand it.
So let’s put it in perspective and compare it to other consumer debts that are out there. Mainly:
- Auto loan debt
- Credit card debt
Total auto loan debt in the US is $1.37 trillion.
And total credit card debt in the US is $804 billion.
This is a big deal. This means that there is more money owed on student loans than there is on auto loans or credit cards.
And the crazy thing is that there are less than half as many people with student loans than auto loans!
(2) Student Loan Debt and Mental Health
While researching this article, this is the scariest thing that I found.
Student loan debt has GREATLY affected the mental health of its borrowers.
- 12% of student loan borrowers have delayed having children because of their student loan balance
- 10% of student loan borrowers have delayed getting married because of their student loan balance
- 42% of student loan borrowers say that their student loan debt triggers high levels of mental and emotional stress (much more than other types of debt)
- 1 in 14 student loan borrowers has contemplated suicide due to student loans
This is scary.
For those people who think that we should “just pay off the student loans” or otherwise just deal with it, you need to sit down and shut up.
Student loans are a BIG deal in millions of peoples lives. They affect our mental health more than any other type of debt and they affect our life paths more than any other type of debt.
Most of us were either told that we had to get a degree NO MATTER WHAT THE COST and we believed it because we were young and naive. If we weren’t told that, we were told that the ONLY way to get ahead in life was to go to college. We also believed that because we were young and naive.
Either way, we are here now. Student loans have become a cancer in our lives and in our society as a whole and something needs to be done about it. I don’t know what that “something” is. But we cannot just keep going on the same path that we are currently on.
(3) The REAL Time it Takes to Pay Back Student Loans
Here are the facts. The AVERAGE student loan borrower takes 20 years to pay off their student loans.
The average average professional takes 45 YEARS to pay back their student loans. (MD, JD, DVM, NP, MBA, etc.)
Think about that! You take out the loans and graduate when you are 25 or so. On average you will pay off your student loans when you are 45. And if you are a professional degree holder, you will likely be closer to 70!
That means that you might very well work for your entire career to pay off your student loans.
No wonder there are so many mental health issues that have student loan debt as a cornerstone.
Here’s the deal. I know that there are some people reading this who think, “None of this applies to me. When I graduate I’ll make really good money and I’ll pay off my student loans in just a few years.”
Don’t count on that though. If it happens, that’s great. In fact, I truly hope that that scenario happens to you. I really do! But play the odds here. Be careful with the amount of student loan debt that you take out.
(4) Student Loan Forgiveness Programs SUCK
Student loan forgiveness programs sound great. But the problem is that they rarely work.
Only about 1.5% of people in the Public Service Student Loan Forgiveness (PSSLF) program have had their student loans paid off after paying on them for 10 years.
If you have student loans, just do what you can to pay them off ASAP. Don’t rely on a forgiveness program to pay them off for you.
Final Thoughts
I know that I sound harsh when I talk about student loans. I am this way because student loans have (and currently are) affecting my own life.
I, maybe like you, sometimes feel like I am drowning in student loan debt.
It sucks.
If you have student loans now, do what you can to pay them off ASAP. Get a side hustle, save money on bills and expenses, apply for a higher paying job, whatever you can. Don’t let them hang around your neck like an albatross.
The good thing is that you are the captain of your own ship.
You can change your life.
I will do whatever I can to give you the financial knowledge to help you do so.
You can do this!
I’m here for you!
Until next time!
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