This Is the Age Most Americans Pay Off Their Student Loans

"Student debt is an unfortunate reality for most U.S. college graduates. Roughly 70 percent of grads leave college with student debt, and over 44 million Americans hold a total of $1.4 trillion in student loan debt. For federal student loans, the standard repayment plan expects borrowers to pay off their debt in less than 10 years. For many, however, it can take twice as long," CNBC reports.
 
"Research from Citizens Financial Group suggests that 60 percent of student debt borrowers expect to pay off their loans in their 40s. Data collected at the state level supports these findings. A study from the OneWisconsin Institute finds that it takes graduates of Wisconsin universities 19.7 years to pay off a bachelor's degree and 23 years to pay off a graduate degree.
 
The Federal Reserve reports that there are that there are 6.8 million student loan borrowers between the ages of 40 and 49 and that together, these graduates hold a collective $229.6 billion in debt. That means that Americans in their 40s with student loan debt each have an average balance of $33,765.
 
Many predict that the long-lasting effects of student debt will impact the housing industry, as well as how Americans finance retirement."
 
NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 7/5/2017

View Desktop Version