Student loan debt could hinder the financial security of boomers, Generation X and millennials, blocking them from such immediate goals as buying a home and from achieving long-term needs, including saving for retirement, according to a new survey.
In the poll this summer of 4,862 adults, 40 percent said student loan debt had prevented or delayed them from saving for retirement, and 32 percent said it stopped or set back their plans to buy a house. The survey, commissioned by AARP and the Association of Young Americans, was conducted by the independent research organization NORC at the University of Chicago. It suggests that regardless of generation, many people have to balance their higher education aspirations against paying their everyday bills.
“Student loans have an impact on financial security across generations,” says Lori Trawinski of the financial security team at AARP’s Public Policy Institute. “Education is one of those issues that really pulls people’s heartstrings because parents want their children to have every opportunity to succeed.”
For ways to save and more, get AARP’s monthly Money newsletter.