Households with student loan debt take a major hit to their overall net worth and are more likely to accumulate other types of debt, according to a Pew Research Center study.
Analyzing government data, Pew looked at households headed by Americans younger than 40 and found that those who graduated college without student loan debt have seven times the net worth, nearly $65,000, as those who have student loan debt, at $8,700.
“They’re behind in building their nest egg,” said Richard Fry, senior economist with Pew.
But the difference in the wealth gap between those who graduated with debt and those who didn’t is greater than the student loan debt itself, suggesting student loan debtors are also susceptible to other kinds of debt. While the typical household that owes student loans has about $13,000 in outstanding debt, it has about $137,000 in total debt compared with the $73,000 in debt that college-educated households without student loans hold.
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