WASHINGTON, D.C. — Seventy-one percent of all currently enrolled college students or previously enrolled students who stopped out of their program before completing it say they have delayed at least one major life event because of their student loans.
The most commonly delayed event is purchasing a home, named by 29% of borrowers, followed closely by buying a car (28%), moving out of their parents’ home (22%) and starting their own business (20%). Fifteen percent of these borrowers also report they have delayed having children because of their student loans, and 13% have delayed marriage.
Among previously enrolled students, 35% say their student loans have kept them from reenrolling in a postsecondary program and finishing their degree, exceeding the percentage who have delayed buying a home, buying a car or other events.
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The latest results are from the Lumina Foundation-Gallup 2024 State of Higher Education Study, conducted Oct. 9-Nov. 16, 2023, via a web survey with 14,032 current and prospective college students. This includes 6,015 students enrolled in a post-high school education program (certificate, associate or bachelor’s degree), 5,012 adults not currently enrolled with some college but no degree, and 3,005 adults who have never been enrolled in a postsecondary school or program. Gallup surveyed all groups via an opt-in online panel.
Delay Rates Are Similar Across Demographic Groups
The percentages of student loan borrowers who say they have delayed one or more major life events are generally similar across subgroups of the current and previously enrolled student population, although male borrowers are slightly more likely than female borrowers (76% vs. 64%, respectively) to report they have delayed a major life event due to their loans. Delay rates are also slightly higher for 26- to 35-year-old borrowers (77%), likely because they have entered a life stage in which these events are more relevant than for younger borrowers and because they generally have higher amounts of student loans than their older peers.
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Even Modest Amounts of Student Loans Impact Major Life Events
Borrowers with higher amounts of student loan debt are far more likely than those borrowing lesser amounts to say they have delayed purchasing a home, buying a car, moving out of their parents’ home or another major life event. More than nine in 10 of those who have borrowed at least $60,000 in student loans say they have delayed one or more of these major milestones because of their student loans. However, even relatively modest student loan amounts have a significant impact — 63% of those who have borrowed less than $10,000 in student loans say they have delayed major life events due to their loans.
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Implications
About four in 10 undergraduate students take out loans to pay the costs associated with their degree. Given that the average cost of attendance ranges from $10,000 per year at public two-year institutions to $50,000 at private, not-for-profit institutions, student loans will continue to be necessary for millions of Americans pursuing postsecondary education. Economic data indicate modest amounts of student loans are a worthwhile investment given that college graduates earn about $1 million more over the course of their working years than U.S. adults with no college degree, on average. However, today, more than 40 million Americans have some college but no degree, and many are struggling to repay loans associated with that incomplete training and education. Understanding how these loans are impacting currently enrolled students, as well as those who have stopped out of their postsecondary experience, is critical to supporting these American as they attempt to achieve important personal milestones, including completing their degree program.
Learn more about the 2024 Lumina Foundation-Gallup State of Higher Education Study here.
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