Millennials find student loan debt has cancelled plans for careers, homes, families

 

Some millennials are turning age 40 this year and they feel they would be farther ahead in life right now if they weren't still grappling with student loan debt. About 68% of older millennials, those born between 1981 and 1988, ages 33 to 40, are still working to pay off their student loans, according to a recent survey. Some are closer to seeing a zero balance than others: about 11% report having paid off nearly all of their loans while nearly 40% have over half of their total balance still left. Nearly a third of the older millennials have completely paid off their student loans, which on average, typically takes about two decades to accomplish. But the older millennials continue to feel the effects while Black women carry most of this student loan debt burden. 

One of many dreams deferred concerning monthly student loan payments include being unable to pursue desired career choices. Nearly 1 in 5 say they weren’t able to take risks with their careers. Many settled for a "stable" job at a corporation adopting a worker bee mentality in order to make rent and pay the bills, rather than pursuing their true passions in writing, the arts, or graphic design, for example, which are considered fickle careers and are usually low-paying. Other failed or postponed plans include buying a home, saving for emergencies and retirement, and having to live with family and friends due to not being able to pay rent. 

For many older millennials student loans helped derail plans for marriage and having children as well. Putting off marriage and a family for at least five years, even after finding "the one," is not uncommon when burdened with student loan debt. Some count death in the family and dropping out to obtain a "regular" job to support a younger sibling as reasons for accumulating student loan debt. 

Borrowing on average is $21,880. Some borrow upwards of $200,000 for advanced degrees. Working a second and sometimes a third job, creating a YouTube channel, and joining the military after college are some side hustles helping to pay off student loan debt instead of watching the interest rates pile up. The push continues for the Biden-Harris administration to forgive $50,000 in student loan debt per borrower. Those taking out loans do so for more expensive institutions and as of late due to job loss.

Sources:

https://www.cnbc.com/2021/04/06/student-loans-affected-older-millennials-homes-families-careers.html

https://news.yahoo.com/ayanna-pressley-t-anti-racist-204342324.html

https://www.cnbc.com/2021/04/13/pressure-mounts-for-biden-to-forgive-student-debt-.html

https://www.cnet.com/personal-finance/student-loan-debt-forgiveness-for-10000-or-50000-important-details-to-know/