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. 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