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High Student-Loan Debt is Crimping Retirement Savings for Millennials

The United States’ astounding student-loan debt—which grows $2,756 every second according to Market Watch’s national student debt clock—is forcing some Millennials to dig into their retirement savings early on. Millennials are 18 to 33 years old, born 1981-1996.

Today about 40 million Americans carry some level of student-loan debt. And with the escalating cost of college tuition and books, it’s not uncommon for today’s graduate to owe $25,000, $50,000 or even $100,000 to earn a college education. Factor in compounded interest, and the debt can seem endless.

The economic result? Young student loan borrowers are making far fewer home and car purchases than preceding generations, according to the New York Federal Reserve, which analyzed the growth of the national student loan market.

The crippling debt is also leading more young adults to postpone contributing to their retirement savings, as well as more returning home to live with Mom and Dad.  A staggering statistic according to NerdWallet.com is that student debt can result in college graduates losing a remarkable $684,474 in retirement savings over 50 years, resulting in a more likely retirement age of 75.
 

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