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The Long Term Effect of Debt on Millennials

THE LONG TERM EFFECT OF DEBT S ON MILLENNIALS 2/3rds of millennials age 23-35 have at least one source of long-term debt. While 1/3rd have more than one source. 39% 37% of Americans carry of Americans younger than credit card debt 40 have student debt. month to month. $16,000 $40,000 Average credit card debt Average student loan debt 5.6% of all students owe more than $100,000. According to a recent report from the Consumer Financial Protection Bureau, student loan debt now totals more than $1.2 trillion. Student loan debt is higher than any other kind of non-mortgage debt in the U.S. More than 40 million Americans have student debt. That's more than Canada's entire population. If the U.S. government were a private company, it would be the most profitable in the world purely from student loans. THE LOẠN BOS 10: 10: 10: Top 10 Colleges Whose Students Owe The Most Non-Profit vs. For-Profit UNITS IN BILLIONS USD For-Profit College Non-Profit College 2000 2014 New York University University of Phoenix (Phoenix campus) $2.2 $35.5 University of Phoenix (Phoenix Campus) Walden University $2.1 $9.8 Nova Southeastern University Nova Southeastern University $1.7 $8.7 Pennsylvania State University DeVry University (linois) $1.7 $8.2 University of Southern California Capella University $1.6 $8.0 Ohio State University (main campus) Strayer University (global region) $1.5 $6.7 Temple University Kaplan University (Davenport campus) $1.5 $6.7 Arizona State University New York University $1.4 $6.3 Michigan State Universíty Argosy University (Chicago) $1.3 $6.2 University of Minnesota (Twin Cities) Ashford University $1.3 $5.9 Financial Impacts The average amount of debt based on the type of institution attended For-profit Private non-profit Public $25,550 $32,300 $39,950 The average size of a student loan has grown 74%. $27,000 67% of millennials reported they did not receive adequate information about loans before taking them. $15,000 20% of graduates' debt was comprised of private loans. 47% of private loan borrowers could have borrowed in less risky, more affordable Stafford loans. 2004 2014 2 in 5 student loan borrowers are delinquent in the first five years of entering repayment. 54% of millennials over age 30 who have student 9 ans are worried about repaying them. 73% have put off saving for retirement or other investments Even among those making 75K+ annually, 34% of millennials doubt they will be able to repay their student loans. because of debts. Student Loans Cause More Debt Households and Percentages of Other Debts: With Student Loans vs. Without Student Loans With Student Loans Without Student Loans 56% 56% Mortgage Mortgage 43% 27% Vehicle Vehicle 9% 9% Other installments Other installments 60% 39% Credit card Credit card 7% 7% Other Other Emotional Impacts People who struggle to pay off debts are twice as likely to experience depression and anxiety. of people with high debt stress report 29% severe anxiety. People with high debt are 3x more likely to suffer from mental illness. For every 10% increase in personal debt, depression worsens by 14%. Significant debt can be a source of shame. of respondencts to a 85% American Psychological Association survey were hesitant to talk about their credit card debt. Researchers found that more than 25% of people with a mental health problem were in debt. Fewer than 9% of people in debt had no mental health problems. Health Impacts People with high levels of debt stress are reported to suffer from at least three stress-related illnesses. High Levels of Debt Stress Low Levels of Debt Stress percentage of people found to have ulcers or 27% 8% digestive tract problems 44% percentage of people found to have migraines 15% or other headaches 29% percentage of people found to have severe 4% anxiety 23% percentage of people found to have severe 4% depression People with high levels of debt stress are twice as likely to have a heart attack. O Daily la Life Impacts 98 In only three years, the number of 23-34 year olds living with their parents grew by 17.5%. Percentage of 25 Year Olds Living With Parents 60-70% 50-60% 40-50% 30-40% WA MT ND VT NH OR MN MA ID SD WI WY MI CT PA NJ JA NV NE OH DE DC MD UT IL IN CA Wy VA KS MO KY NC TN AZ NM OK AR SC AL GA MS TX FL 75% report that student loan debt has affected their decision or ability to purchase a home. 63% report that debt has affected the ability to make big purchases, like a car. 43% report that student debt has delayed starting a family. 29% of millennials have put off marriage due to student loan debt. 22% of millennials have cancelled continuing their education because of debt. Sources: YELLOWBIICK FIND YOUR WAY HOME es/pub_files/Debt_Facts_and_Sources.pdf .com/science/article/pi/s0272735813001256 www /sitting-professor-thorne-young-adult-debt-drag d-economic-well-being

The Long Term Effect of Debt on Millennials

shared by matthewzajechowski on Jan 14
Credit cards, student loans, mortgages, car payments—today’s millennials have more debt than ever, and studies show that there can be a long-term health effect on the stress this causes. Two-thir...


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