It's no surprise college grads make more money than those with just a high school diploma. To get specific, a college degree can boost your lifetime earning potential by $1 million.
But what often gets lost in this 101 discussion about college degrees and earning potential is the fact there's a wealth gap—and it's a huge one—between those who have student loans and those who don't. In fact, millennials saddled with student loans have an average 75 percent less wealth than those who don't, according to a new analysis from MoneyMagnify, a LendingTree-affiliated site that helps consumers compare financial products.
For the study, the team at MoneyMagnify compared data from the Federal Reserve's Survey of Consumer Finances. Specifically, they looked at how household finances in 2016 compared for those under age 35 with and without student loan debt.
They found that Millennial households with student debt have an average net worth of $29,087, compared with $114,376 for student loan-free households. That shakes out to be a whopping $85,289 difference.
The wealth gap between those with student loan debt and those without is widening, too. In 1989, under-35 households with student loan debt had, on average, just 13 percent less in average net worth than their peers who weren't paying back college loans.
Today's significant wealth gap, though, means those with student loan payments have less in their checking and savings accounts, as well as less in their retirement savings. If that wasn't enough, they also have higher mortgages on lower-value homes, according to MoneyMagnify's analysis.
from Apartment Therapy | Saving the world, one room at a time https://ift.tt/2PWYnSt
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