More Millennials, Gen Z Delays Marriage to Reduce Debt

Student debt slows relationship decisions among young Americans, says new study from private lender LendKey Technologies.

About a third of respondents aged 18 to 34 say they could postpone marriage – or have already done so – until student debt is paid off, according to the study, which surveyed 1,037 American adults who attended university. The study was entrusted to USA TODAY exclusively.

This number decreased among older respondents. About 17% of those aged 35 to 54 would postpone marriage and 10% of those 55 and over would delay it.

Debt has also affected the choices of partners.

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Just over a third of Millennials and Gen Z respondents say a potential partner’s student or credit card balances could affect their choice of mate, depending on the amount of debt. Twenty percent say they would agree with student loan debt but not credit debt, while 6% say the opposite.

Only 4% say any amount of debt was a dealbreaker. About 36% of the people questioned say that the debt would not be taken into account in the marital decisions.

“Student debt is something millennials need to think about when considering getting married,” says Vince Passione, CEO of LendKey. “It doesn’t just affect their wallet, it also affects how they view relationships.”

Separate study shows that more than 50% of millennials who come out don’t want to get married until their finances are in order, according to one recent poll by Credit Karma. Almost two-thirds of millennials surveyed who were in a relationship have a separate bank account from their partner. And nearly a third say keeping at least one bank account separate from their partner’s helps keep their relationship alive.

Borrowers of all ages currently owe about $ 1.5 trillion in student loans, according to the Brookings Institution. About 42 million Americans have student loans, which account for the second largest portion of household debt after mortgages.

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LendKey’s investigation also revealed a lack of financial literacy when it comes to student loans. Only 16% of people between 18 and 34 say they have “looked” for the best rate and the best terms for a student loan. % for the holidays.

The data suggests that students need a better understanding of the lending process, says Passione of LendKey.

About 41% say they believe the loans are from the schools themselves, while 14% mistakenly believe that angel investors give loans to the public. Millennials and Gen Z borrowers were more likely than older generations to believe that a government program will eventually ease their burden.