Study: Average Student Loan Debt Could Cost A Household $208,000 Over A Lifetime
Career College Central summary:
A study released last week by public policy research organization Demos found that a household with $53,000 in outstanding student debt — which is the average college loan balance for a family headed by two people with 4-year degrees — will be about $208,000 poorer over a lifetime than a similar household with no debt.
Researchers created a model comparing two nearly-identical dual-headed, college-educated households, one of which had student debt and the other did not. The model assumed that members of the two households earned the same salaries, had the same money available for retirement and purchased homes at the same time, among other factors.
The research results paint a grim picture of the burden student debt places on borrowers. The researchers noted that the lifetime wealth loss could be more than $208,000 for borrowers with larger-than-average education debt, students from low-income families and those that attended for-profit colleges.
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THE HUFFINGTON POST