A new report from Gallup and the Lumina Foundation reveals that roughly two-thirds of Gen Z borrowers have postponed at least one major life milestone because of their student loan debt. The findings, released Tuesday, underscore how the $1 trillion debt burden continues to shape the financial decisions of younger generations.
The debt remains a central driver of affordability struggles nationwide, now compounded by the resumption of wage garnishment for borrowers in default after a pandemic-era pause ended last year. Each successive generation is less likely to report such delays, with nearly a third of Baby Boomers saying they too put off milestones.
Saving for retirement and returning to school were the most commonly delayed activities, according to the survey. Loans also held borrowers back from buying a home, purchasing a car, and getting married—31% of Gen Z borrowers said their debt prevented them from buying a home specifically.
The data suggests lingering consequences extend beyond immediate financial strain, potentially reshaping long-term economic patterns for millions. As repayment pressures intensify, the ability of young adults to accumulate wealth and achieve traditional markers of independence remains under threat.
Critics argue that focusing solely on debt overlooks the increased earning potential that higher education provides. Some economists contend that for many graduates, the investment still pays off over a lifetime, despite the near-term hardships.