One of the main problems facing recent graduates is the debt they’re stuck with after school. According to a report by Experian, college loan balances in the U.S. have jumped more than $833 billion to reach an all-time high of 1.4 trillion. To break that down, the amount of students that owe over 50,000 has tripled.
After purchasing a home, student loan debt is one of the most expensive debts a person can have. In fact, it appears many students are having buyer’s remorse when it comes to using debt to pay for college. In a survey by Citizen’s Bank, 57% of college students regret taking out as many loans as they did and 36% wouldn’t have even gone to college if they understood the costs. That is a staggering number.
Student loan debt can have major consequences. Millennials are pushing back major life milestones because of their financial insecurities
However, recent data shows that students are starting to manage their debt better and making more consistent payments.
In the long run, higher education is generally considered worth the significant investment. Student with college and advanced degrees do tend to earn materially more over their lifetime. However, starting out with huge student loan debt is an anchor that can clearly take years—if not decades—for many young adults to overcome. The best advice we’ve seen: take out the least amount of loans that you can and, if possible, attend a less expensive school that still offers a good education. While it may be too late for many Millennials to heed this advice our research into Gen Z shows that this generation is definitely seeking to find ways to complete their education with as little debt as possible.
At The Center for Generational Kinetics, we turn Millennial and Gen Z trends into fuel for your sales, marketing, employment, and growth.
Contact us today to see how we can help you unlock new sales and bridge the generational divide with #Millennials and Gen Z.