Student Loans Weighing Down Millennials - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Student Loans Weighing Down Millennials

Student Loans Weighing Down Millennials

Add to Favorites:
Student Loans Weighing Down Millennials
April
26

Paying off student loans can really crimp your style, whether you want to buy a house or travel, and this is especially true for Millennials, according to a new study. It shows that 51% are allotting one-fifth of their monthly income to pay their loans. With 60% believing that they will be paying them off way into their forties.

Citizens Bank’s new Millennial Graduates in Debt study looked at how this generation is handling their student loans. Finding that it resulted in many making financial tradeoffs and some believing it was not worth cost in the end.

“The long-term cost of college continues to be a major challenge for Millennials, even after they have established themselves in the workforce and significantly improved their credit from where they were when they started school,” said Brendan Coughlin, president of Consumer Lending for Citizens Bank.

College is getting more expensive

If you think the cost of going to college has gone up, you are right. According to The College Board, it costs more with tuition for public four-year collages going up 13% while the cost of private schools has gone up 11%.

Student loans are a key way of footing the bill. With 77% of people saying that they applied for and received federal loans while a third went with private student loans, which usually provide students with less money and need a co-signer to complete the process.

Student loan equals buyer’s remorse for some

Millennials with student loans found that they had to make sacrifices to pay down their loans and make their monthly payments, in everything from travel to eating out. The tradeoffs included:

• 54% traveled less
• 50% limited their clothing budget
• 46% reduced how much they spend on going out
• 45% dined out less
• 40% budgeted less for rent or mortgage payments

With the tradeoffs came buyer’s remorse for some Millennials, with 57% regretting taking out so many loans, and 36% indicating that they would have given college a pass if they knew then what they know now about the overall cost of the loans.

Yet even with that change of heart, just half looked at ways to reduce their payments whether that meant checking out refinancing options or consolidating their federal and private loans.
Citizens Bank’s new Millennial Graduates in Debt study was conducted by TNS from February 10 to 22, 2016. They interviewed 501 U.S. Millennials between the ages of 18 and 35 who either were college students or graduates and had student loans.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

College Website By Discover Unveiled
College Website By Discover Unveiled

Posted: September 22, 2017

Discover has a launched College Covered, a new website designed to provide high school students, parents and guidance counselors the inside scoop on the ins and outs of preparing for college, whether that is writing their essay, tips on... Continue reading
Students Loan Stress Trumps College Application Stress
Students Loan Stress Trumps College Application Stress

Posted: October 20, 2016

Is anything more stressful than applying for college? Getting a student loan, according to a new study by Citizens Bank, which showed that the student loan process spikes stress levels for many. Continue reading
Academics Trump Cost for Parents with College-Bound Kids
Academics Trump Cost for Parents with College-Bound Kids

Posted: June 20, 2017

When it comes to their kids' college education, 50% of parents are more concerned with the school's academic standing than other factors when figuring out which school is the best fit for their child, according to a new Discover national... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the cash back earned at the end of your first year, automatically.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit