Student Loans Can Endanger Retirement Savings
The cost of college rose and choked out young people's ability to save.
Like we need more evidence that young Americans should be rethinking the traditional career route that leads past the ivory tower. “According to a new study, the average student loan debt of $35,000 can cost graduates nearly $700,000 in lost retirement savings over a 50-year period,” reports CBS News, adding that if college debt continues to increase, it will affect retirement savings on a greater scale. It makes sense: The hundreds of dollars that go to the loan companies every month are hundreds of dollars that could have been going into a graduate’s retirement account. Instead of collecting interest, graduates are paying thousands in interest. Saving favors the young, but the cost of college rose and choked out young people’s ability to save. Meanwhile, there is another way. As Sen. Marco Rubio said, “I don’t know why we have stigmatized vocational education. Welders make more money than philosophers.” Less debt, too.