As prospective students and families get ready to venture out to visit college campuses, they may want to take heed of what their not so older counterparts are grousing about -- the financial debt they are saddled with.
In fact, according to a new Bankrate.com report, 77 percent of millennials who have had student loan debt say they would approach their college financing differently, and 73 percent say they have delayed a major milestone because of their student debt.
The students polled say they have not been able to save for emergencies (38 percent), home buying (31 percent), paying off other debt such as a credit card (28 percent), buying or leasing a car (28 percent), saving for retirement (25 percent), having children (19 percent) and getting married (17 percent). Four percent also noted other things they delayed due to student loan debt.
Bankrate.com notes that student loan debt in the U.S. has reached a total of $1.5 trillion. The debt is taking a toll, and respondents are feeling remorse. Thirty-four percent say they would have applied for more scholarships than they did, 25 percent would have attended a cheaper university, 24 percent would opt for attending a community college or trade school and 23 percent would have majored in a different field. Nearly 1 in 10 (9 percent) would not have attended college at all.
“For those prospective students and their families, many of who will help them to pay for their secondary education, we’d urge them to investigate all possible options for financial aid, including scholarships, to limit their borrowing,’’ said Mark Hamrick, senior economic analyst for Bankrate.com. “Their options also include attending a lower-cost school, such as those in-state as well as more economical trade schools and community colleges.”
The report pointed out that although baby boomers didn’t face student loan debt as frequently as their younger counterparts, the prevalence of this financial burden is significant across generations. Baby boomers (ages 55-73) are far less likely than millennials to have had their own student loan debt (24 percent versus 39 percent), and they also are much less likely to have delayed a major financial decision as a result, the report noted.
In addition, the report noted that 50 percent of baby boomers who have had student loan debt say it has not caused them to delay a major life or financial milestone, while only 27 percent of millennials with student debt can say the same.