Here’s an indication of how burdensome student loans have become: About one third of millennials say they would have been better off working, instead of going to college and paying tuition.
That’s a according to a new Wells Fargo study which surveyed 1,414 millennials between the ages of 22 and 32. More than half of them financed their education through student loans, and many say that if they had $10,000 the “first thing” they’d do is pay down their student loan or credit card debt.
That’s no surprise when you consider student borrowing topped the $100 billion threshold for the first time in 2010, and total outstanding loans exceeded $1 trillion for the first time in 2011. Student loan debt now exceeds credit card debt in the U.S., which stands at about $798 billion.
The problem sometimes is that not all college educations are worth their cost since they can’t guarantee a high-paying job to help pay off that student debt. A report from the National Association of Consumer Bankruptcy Attorneys says the rising student debt problem can have a bad impact on the economy. Even in the best of economic times when jobs are plentiful, young people with considerable debt burdens end up delaying life-cycle events such as buying a car, purchasing a home, getting married and having children.