We are constantly hearing about the student debt crisis in America, but just how bad is it really? Well, according to a new TD Bank survey, student loans are keeping a lot of people from moving forward in their lives.
Of the more than 1,000 people surveyed who have paid off or currently repaying student loans, the survey finds the average total student debt comes out to $26,495, with an average payment of $579 a month, which means the average person is using 20% of their monthly paycheck to pay off their debts.
And all that debt is keeping folks from investing in their future. It seems 61% of those polled can only save about 10% or less of their income each month, while 20% are saving no money at all. And because of their debt, 54% of respondents have maxed out their credit lines, while others can’t enjoy simple pleasures in life. For example:
- 35% dine out less often
- 60% do not take vacations
- 20% haven't joined a gym
What’s more, student loans have forced many to delay major life milestones, including:
- Buying a home (36%)
- Contributing to a 401(k) plan (41%), a rainy-day fund (43%) or other investments (42%)
- Getting married (21%)
- Having kids (26%)
And all this student debt is leaving folks with a lot of regret. It seems 46% of people would make different choices about their education if they could, with 15% saying they’d pick a less expensive school, 20% saying they’d take out fewer loans and find another way to pay and 11% say they wouldn’t have taken out any student loans at all.
Source:Market Watch