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MIT Poll: Student Loans Hamper Retirement Savings

a ball and chain costume is used to show how students are weighed down higher education costs
(Jacquelyn Martin/AP)

By    |   Thursday, 08 August 2019 05:15 PM

Student loans are hampering borrowers' ability to save for retirement, according to a new survey conducted by MIT AgeLab.

Eighty-four percent of American adults say student loans are negatively impacting the amount they can save for retirement, and 73% say they expect to begin or increase their contributions once those debts are paid off.

Student loan debt in 2019 is the highest in U.S. history, with more than 44 million borrowers who collectively owe $1.5 trillion. It is now the second-highest consumer debt category behind mortgage debt.

About one in four of the U.S. population older than 18 currently carries a federal student loan, with the average borrower owing $37,172. The average monthly student loan payment totals $393.

"To be sure, getting a college degree remains one of the smartest investments a person can make in their financial future – but saving for retirement is equally important," said Roger W. Ferguson, Jr., president and CEO of TIAA, which sponsored the survey. "We believe that advice and coaching are key to navigating what can seem like competing demands.

"TIAA has found that people who engage with qualified financial professionals are better equipped to make decisions about paying for education for themselves or a loved one without sacrificing their future financial security."

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Student loans are negatively impacting the amount they can save for retirement, according 84% of American adults in a new survey conducted by MIT AgeLab.
mit, student loans, retirement, investment, debt, loan forgiveness
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2019-15-08
Thursday, 08 August 2019 05:15 PM
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