Student loans are the second largest household liability in the US, after mortgages. US student debt is bigger than auto or credit card debt. According to the Federal Reserve Bank of New York, Americans collectively had $1.4 trillion in college student debt at the end of 2017. Student loans can help poorer Americans access higher education, in turn improving their economic opportunities and boosting US economic growth. However, high and long-lasting student debt can make it very hard to buy homes or start businesses. This, in turn, drags down longer-term growth.
To determine how long it takes for Americans to pay off their student debt, RIWI randomly engaged more than 24,890 Americans aged 18 and over about their student loans. We collected data continuously over five months, from February 7 – June 28, 2018.
See more RIWI data and a report on the topic here.
Image source: Shutterstock