The millennial lending crisis
Poor job prospects, excessive debt and lack of suitable savings and investing habits have, in the eyes of many observers, put the American dream beyond the reach of many Millennials. And yet, this segment is the largest generation in American history and will eventually benefit from one of the biggest transfers of wealth in history.
In a comprehensive research report, Raddon Financial Group explores the attitudes and behaviors of younger consumers with respect to financial services to help determine how banks and credit unions can best meet the evolving needs of this critical segment. The study compares Millennials’ behavior and attitudes against those of Gen X and Baby Boomers, with a heavy emphasis on lending.
The Pain, Impact and Cost of Student Loans Is Real
Today, the amount of student-loan indebtedness carried by US consumers is simply staggering. Raddon says the volume of student loans has skyrocketed since 2004, and is now second only to total home mortgage loan indebtedness.
While 15% of all consumers have a student loan, six out of ten of those (57%) are Millennials. In Raddon’s study, 36% of Millennials said they currently carry student loan debts, creating a tremendous financial burden for them. One-half (52%) feel their student loan debt has prevented- or will prevent them from fulfilling their personal and financial goals — e.g., saving for retirement, taking a vacation, investing funds to build personal wealth, purchasing a home, or buying a car. Millennials with student loans are also much less likely to form their own households.
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