Student loan debt in 2019 reached an all-time high. According to Forbes, more than 44 million borrowers in the United States collectively owed over $1.5 trillion. Student loan balances are now the largest form of consumer debt after mortgages, surpassing both credit card and auto loan obligations. For example, the Institute for College Access and Success reports that the class of 2017 graduated with an average debt of $28,650.
More troubling, over 2.5 million borrowers owe more than $100,000 in student loans, and roughly 610,000 of those individuals carry balances exceeding $200,000. The biggest increase in balances has been seen among 30- to 39-year-olds, a trend that reflects people enrolling in higher education later in life or returning to school to change careers or pursue advanced degrees.
Rising student loan obligations may also be changing workplace dynamics. Younger workers, weighed down by debt, may be likelier to leave jobs for higher-paying positions. It is not uncommon for recent graduates to devote 15 percent or more of their take-home pay to student loan payments, which can make staying in lower-paying roles difficult.
A University of Michigan survey shows that adults under 35 have reduced spending compared with previous generations. Factors behind this shift include weaker job prospects, delayed family formation and educational debt. Lower consumer spending can slow economic growth, meaning this debt burden affects not only individual borrowers but the broader economy.
Policy discussions and targeted programs aim to address the burden of student debt. Some proposals consider broad loan forgiveness, while specific public service jobs and certain career fields already offer forgiveness or repayment assistance. Exploring available programs and eligibility criteria can uncover options that may significantly reduce your balance or monthly payments.
If you are carrying student loan debt, ideally those funds helped you enter a desired career. For many borrowers, investing in education pays off over time, even though monthly progress can feel slow. Staying current on payments is important to protect your credit score. If you encounter financial hardship due to job loss, illness, or other unexpected events, don’t panic: contact your loan servicer promptly. Federal borrowers may have access to options such as deferment, forbearance, income-driven repayment plans, or other hardship accommodations.
This article is provided for informational purposes only and is not a substitute for professional financial advice. Consult a certified financial advisor or other qualified professional with any questions about personal finance, investments, or loan management.