Proof That Student Debt Is Creating A Wealth Gap Among Young Adults [Charts]

student-debt-cartoon-
student-debt-cartoon-

Almost every millennial can agree with me when I say “FU*K STUDENT LOANS!!!”

Well Huffington Post has outlined data that only further proves how much student debt is raping our pockets, and placing our generation behind with a major wealth gap.

After the recent recession that revealed to the public that we can’t trust the government/banking systems, and loads of recent data that shows how much debt is ruining our society, it’s time that we really start to band together and say “Away With Student Debt!”

Graduating-with-Debt

Via: HuffingtonPost

The difference in how well young adults with college degrees are living depends significantly on whether or not they’re carrying student debt, according to the Pew Research Center.

A new report released Wednesday, titled Young Adults, Student Debt and Economic Well-Being,” details a growing wealth gap between those in debt and those who are not.

Roughly four-in-ten households headed by an adult younger than 40 currently have some student debt, which the Pew Research Center notes is the highest share on record.

record share

Yet, Pew finds another reason why this greater share of households with debt is troublesome. Young adult households headed by someone who is college educated without student debt have a typical net worth 7 times higher than those with student loans to pay back.

wealth

Those same households with student debt also typically have twice as much total indebtedness — counting mortgage, auto and credit card debt — as those without education loans. In addition, 41 percent of college educated persons with student debt say their total debt exceeds the value of their assets, compared to just 5 percent of college educated people without student loans.

The difference in the median debt-to-income ratio between college educated young adults with student debt and those without keeps growing, and at a faster rate after the turn of the century.
debt to income

In a separate study also released Wednesday, by the American Enterprise Institute, data shows graduates with four-year degrees are becoming more likely than those with just some college or with advanced degrees to be late on their student loan payments.
aie late payments

According to AEI, “after controlling for factors like educational attainment and age, … an additional $1,000 in student loan debt is associated with a 0.11 percentage point increase in the likelihood of financial hardship.”

Here Are The Top Ten States With Student Debt

  1. Delaware – $33,649
  2. New Hampshire – $32,698
  3. Pennsylvania – $31,675
  4. Minnesota – $31,497
  5. Rhode Island – $31,156
  6. Iowa – $29,456
  7. Maine – $29,352

 

For more information on student debt, and how you can possibly help prevent it from controlling your life visit ProjectOnStudentDebt