The Huffington Post reported today on the wealth gap created by student loan debt. There are some frightening insights based on the Pew Research Center report titled “Young Adults, Student Debt and Economic Well-Being”. A record 37% of households head by an adult under 40 has student loan debt.
Another piece of staggering data is that college graduates without college debt in the same age group have a typical net worth 7 times higher than those with student loans to pay back.
I can attest to the increase burden student loans are having on young adults. In the last year, I have counseled more young adults weighed down by student loan payments. As a result of this debt my young adults clients are choosing to live at home with parents or find multiple roommates to make ends meet, delay purchasing a home, buying used cars or relying on public transportation.
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