TD Bank’s Student Debt Impact Survey results have determined loan payments have a dramatic impact on young adults’ daily finances, placing their long term financial health in flux.
“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. “Consumers owe money before they even earn their first paycheck, which is troubling.”
The analysis involved asking more than 1,000 Americans who paid off or are currently repaying student loan debt, ages 18 to 39, how the debt is impacting their lives and factors they considered before taking out the loan.
The average total student debt held by survey respondents is $26,495, officials said, with the average debt payment being $579 a month. The reported average monthly take-home pay is $2,689, which officials said translates to one-in-five take-home pay dollars being spent on repaying a student debt.
“The reality is many Americans need to take on student loan debt to finance higher education, but most are unaware of how it will impact their lives long-term,” Kinane said. “We’re seeing an alarming lack of education surrounding student loans, repayment terms and borrowers’ earning potential after graduation.”
The survey results indicated student loan borrowers overwhelmingly lack education about the impact of loans on credit health, as well as how to maintain payments and save for the future.
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