The Real Cost of Student Loans
College graduates with student loan debt aren’t only thinking about how much they’ll have to pay back in student loan interest and principal over the next 10, 20 or 25 years. Increasingly, borrowers and policymakers alike are coming to terms with the reality that the real cost of those student loans is much higher. A recent study by GoodCall addresses the opportunity cost of having to repay student loans and what it means for retirement savings, buying a home and lifestyle.
GoodCall’s analysis reveals that a college graduate with $28,950 in student loan debt will have nearly $500,000 less in potential retirement savings. What’s more, having to pay back the average student loan debt can extend the amount of time it’ll take to save for home down payment by five extra years. These graduates can also expect to make important lifestyle sacrifices, paying back student loans that equal what dozens of vacations would cost or even the price of a brand-new luxury car.
For the full report: The Real Cost of Student Loans