The nation's mounting student loan debt is threatening to degrade the financial health of America's youth for years to come, according to a survey by TD Bank.
The survey found that the average American with student debt is paying about 20% of their weekly pay in loan repayments—about $579 in debt payments a month on an average monthly salary of $2,689.
The nation's $1.5 trillion in student loans has become a prominent issue, with many employers rolling out loan repayment programs as part of their benefits packages and presidential candidates making debt relief a key part of their platforms.
"Regardless of future policies, today's young adults say their loan payments have a dramatic impact on their day-to-day finances, putting their longer term financial health in question," TD Bank said in a press release on Thursday.
The survey, based on answers from 1,000 people between the ages of 18 and 39 who have paid off or are currently repaying student loan debt, found that 24% of loan holders expect to be repaying their loans for the next 10 years or more. About 61% expect to pay their loans in four or more years after graduation.
Young adults also appear to be having difficulty saving money as they repay their loans, according to the survey. Twenty percent said they are not saving anything each month, while 61% said they are saving 10% or less of their monthly income.
The squeeze on their finances is impacting their lifestyles, with 54% having maxed out credit lines; 35% dining out less; 60% not taking vacations; and 20% choosing not to join a gym, according to the survey.
Millennials are also putting off some of the traditional milestones of adult life becuase of student loans, TD Bank said, with respondents saying they've delayed buying a home (36%), contributing to a 401(k) (41%), getting married (21%) and having kids (26%).
"The results of our survey show that student loans can have a ripple effect on borrowers' financial futures," Mike Kinane, head of US Bankcard at TD Bank, said in a prepared statement. "Consumers owe money before they even earn their first paycheck, which is troubling."
The survey was conducted in June by research company Maru/Matchbox.