54% of Americans Have Maxed Out Credit Lines Due To Student Loans
Student loan debt in America is nearly double the country’s credit card debt. For many households, the cost of education is starting to bleed into other debt sources. According to research from TD Bank, 54% of Americans with student loans have maxed out credit lines because of their loans.
The Student Debt Impact Survey included adults ages 18 to 39 who have paid off or are actively repaying their student loan debt. Respondents had an average monthly payment of $579, representing one-fifth of their take-home pay.
Three out of five respondents said they do not take vacations because of their student loan payments. This aligns with similar studies from earlier this year. For instance, College Ave Student Loans found that 74% of parents with college-age children have delayed vacations because of tuition costs. In addition, 32% of those parents said they use their credit cards more often because of school-related expenses.
Student loans have had a major impact on long-term decisions. TD Bank found that 36% of participants delayed buying a home and over 40% delayed retirement contributions and other investments.
Nearly half (46%) of former college students said they would make different decisions about their education if given the chance: 20% said they would take out fewer student loans, and 11% said they would not take out loans at all.