America’s skyrocketing student loan debt may be keeping young people from moving out of their parents’ homes.
There’s “a clear positive correlation between a state’s student debt growth and the rate at which its twenty-five-year-olds live with their parents,” according to a new report from the Federal Reserve Bank of New York, which analyzed what factors are to blame for keeping millennials living at home. While housing costs and a tough job market may also be fueling the trend, the dramatic rise in student debt being shouldered by college graduates was most closely associated with the rise of young people living with their parents.
Forty million Americans now have student debt with an average balance of $29,000. And these numbers have climbed rapidly in recent years. Americans carry a total of $1.2 trillion in student debt — up 84 percent since the recession.