Student Debt Affects How Much College Graduates Save for Retirement
Student loan debt is on the rise and now we know a little bit more about how it affects retirement plans.
A new Center for Retirement Research at Boston College study looked at how student loan debt affects young workers’ 401(k) participation and assets. The study found student loans have virtually no effect on participation and asset accumulation of non-graduates, but graduates with student loans accumulate 50 percent less retirement wealth by age 30.
The study also found graduates’ retirement plan assets are not sensitive to the size of student loans.