Pew study unveils rising student debt straining young Americans

[KARAH RUCKER]

AS OF JUNE 2024, AMERICANS ARE GRAPPLING WITH A STAGGERING $1.6 TRILLION IN STUDENT LOAN DEBT, A 42% SURGE FROM A DECADE AGO. THIS SPIKE REFLECTS MORE YOUNG ADULTS ATTENDING COLLEGE AMID SOARING HIGHER EDUCATION COSTS.

A NEW PEW RESEARCH CENTER ANALYSIS HAS SHED LIGHT ON THIS GROWING BURDEN.

HERE’S A BREAKDOWN: ONE IN FOUR U.S. ADULTS UNDER 40 IS SADDLED WITH STUDENT LOAN DEBT. AS WE LOOK AT OLDER DEMOGRAPHICS, THE NUMBERS DROP—ONLY 14% OF THOSE AGED 40 TO 49 AND JUST 4% OF THOSE OVER 50 ARE PAYING OFF STUDENT LOANS.

THE DEBT LOAD VARIES SIGNIFICANTLY BY EDUCATION LEVEL. FOR INSTANCE, THE AVERAGE DEBT FOR SOMEONE WITH SOME COLLEGE BUT NO BACHELOR’S DEGREE HOVERS BETWEEN $10,000 AND $14,999.

BACHELOR’S DEGREE HOLDERS TYPICALLY OWE BETWEEN $20,000 AND $24,999, WHILE THOSE WITH POSTGRADUATE DEGREES FACE BETWEEN $40,000 AND $49,999.

ALARMINGLY, A QUARTER OF THESE POSTGRADUATE BORROWERS OWE UPWARDS OF $100,000.

THE FINANCIAL STRAIN IS PARTICULARLY SERIOUS FOR YOUNG GRADUATES. A QUARTER OF THOSE AGED 25 TO 39 WITH STUDENT LOANS ADMIT TO STRUGGLING FINANCIALLY, COMPARED TO JUST 9% OF THEIR PEERS WITHOUT LOANS.

ALTHOUGH HALF OF THE INDEBTED YOUNG GRADUATES EARN AT LEAST $100,000 ANNUALLY, THEIR INCOMES STILL TRAIL BEHIND THOSE WHO GRADUATED DEBT-FREE.

MANY OF THESE YOUNG BORROWERS QUESTION THE COST OF THEIR EDUCATION. ABOUT 35% BELIEVE THE FINANCIAL TOLL OF THEIR DEGREE WASN’T WORTH IT, CONTRASTING WITH THE 16% OF DEBT-FREE GRADUATES WHO FEEL THE SAME.

FOR MORE OF OUR UNBIASED — STRAIGHT FACTS REPORTING — DOWNLOAD THE STRAIGHT ARROW NEWS APP OR VISIT US AT SAN – DOT – COM.