Millennials have tons of debt. But it’s not necessarily from being irresponsible. A new study from LendingTree shows that the greatest amount of millennial debt stems from getting an education.
LendingTree analyzes credit report data from millennials in the 50 biggest metro areas in the U.S. and found that student loan debt outweighs all other types of debt (excluding mortgages), clocking in at 40 percent of their total credit and loan balances.
Student loan debt has surpassed $1.5 trillion and comprises 11 percent of collective household debt, according to Federal Reserve data.
The LendingTree study broke debt into five categories: student, auto, credit cards, personal loans, and other.
It found that auto loans are also a burden for some millennials, making up an average of about 33 percent of millennials’ total debt balance.
This debt epidemic is keeping many millennials from moving out of their parents’ house, buying their own homes, and even starting a family. And while there’s not much to suggest in how to reverse this course for millennials, perhaps the current conversation about the waning value of a degree might save Gen Z from such massive debt numbers.
For millennials living under burdensome debt, they are left to explore their repayment options and see if they can refinance their loans.
Alexander James is a contributor to Red Alert Politics and a freelance journalist.
