Almost Sixty Percent Say Student Loan Debt is Hindering Their Retirement Savings
ROLLING MEADOWS, Ill., April 18, 2017 /PRNewswire/ — IonTuition.com, the leading education-fintech company specializing in helping borrowers monitor, manage and repay their student loans, today announced the results of a new survey that shows how student loan debt is affecting older generations.
The impact of student loan debt on millennials is widely discussed, but IonTuition was interested in exploring how student loan debt affects the financial wellness of older generations. In a survey of more than 900 student loan borrowers over the age of 35, IonTuition found that over 37 percent of respondents had fallen behind on their student loan payments and 17 percent had defaulted on their student loans.
Click here for full survey report.
The survey also found:
An unexpected burden for both Gen Xers and Baby Boomers: Almost three-fourths of respondents did not expect to be repaying student loans at this stage in their lives. Among Baby Boomers, that segment jumped to 94 percent.
- Financial Security More Valuable Than Health and Wellness: 54 percent of respondents feel their student loan payments are too high. 29 percent would prefer student loan repayment assistance from their employers over health care benefits. Interestingly, 60 percent reported being unable to prepare properly for retirement because of student loans, and more than a third would prefer student loan repayment assistance over 401(k) contributions.
- Taking on Financial Burdens for Others: Respondents taking out and/or cosigning student loans for others are also struggling. 40 percent regularly assist with payments on cosigned education loans. Nearly half of Gen Xers and Baby Boomers who cosigned for loans are concerned that the borrower may not pay back their loans.
- A Multigenerational Impact: More than 75 percent of respondents felt employer-provided student loan benefits would be helpful, highlighting the multigenerational impact of what is often considered to be a millennial-only concern.
“Businesses have a unique opportunity to help workers of all ages,” said Balaji “Raj” Rajan, CEO of IonTuition. “Employees are struggling to meet their financial goals. Student loan assistance is a benefit that helps workers meet major milestones in life, from home ownership to retirement.”
IonTuition provides employers and colleges with a web-based student loan management platform their employees and students can use to better understand, manage and optimize repayment of their student loans. IonTuition displays loans – both federal and private – in a single, user-friendly dashboard. Employees from participating companies can also pay down their loan debt using iontuition.com which processes employer contributions to accelerate repayment. In addition to an ROI-based college selection tool and member discount program, users are connected to expert student loan counselors, financial literacy content and a monitoring service that keeps them aware of critical changes to their loans via email, text, and mobile app alerts.
For partnership inquiries, visit here or call 888.853.8323.
IonTuition is an industry leader in student loan management solutions. We’re involved in the entire lifecycle of student loan repayment, from providing perspective college students predicted returns from potential universities, to helping employers provide repayment assistance benefits. For years we’ve delivered interactive, user-friendly loan management tools to users of all kinds. Our mission has always been to help student loan borrowers at every stage, at any age.