Shelby Fletcher, an IU senior, is $25,000 in debt.
For the first few years of college, Fletcher said she did not think about her financial difficulties often. However, now that she’s graduating in May, she said the debt weighs on her mind.
“As I’m graduating, it’s becoming quite a bit more real and feeling more burdensome,” said Fletcher, a marketing and operations management major in the Kelley School of Business. “I know the time is coming where I’m going to have to pay that money back.”
However, according to a new study, Money Under 35, Fletcher shouldn’t worry: the study found young adults’ financial health increases with age and educational attainment.
Money Under 35 is the first study released by Navient, the largest servicer of student loans in the United States, and Ipsos, a market research company.
The study examined 3,000 young adults, age 22 to 35, in order to determine the individuals’ financial well-being.
Nikki Lavoie, director of corporate communications for Navient, said the key to financial health, regardless of whether one borrows money or not to go to college, is graduating.
“One-third of those with an advanced degree have excellent financial health,” Lavoie said. “Degree holders are able to capitalize on the value of their education and increase their earning potential.”
According to the study, 91 percent of young adults with a college degree have good or excellent financial health, while 80 percent of young people without a college degree report having good or excellent financial health.
“Achieving at least a bachelor’s degree significantly reduces the likelihood of scoring in the ‘poor’ financial health range,” according to the study. “Fewer than one in 10 with a bachelor’s or advanced degree is in ‘poor’ financial health.”
Money Under 35 also found young adults with degrees are more likely to be employed. Eighty-three percent of young adults with degrees have jobs, while 63 percent of young adults without degrees have jobs.
Taking out loans to go to college does not hinder someone from success, so students should not fear borrowing money, said Nick LaMastra, media analyst at Navient.
“Young people who borrowed to complete a degree are generally as likely — if not more so — to have achieved major life milestones, such as getting married, owning a home and having children,” LaMastra said in an email.
Fletcher said the future scares her, but she has a job waiting for her at Clear Software in Indianapolis, so this relieves some stress.
“I won’t be able to save as much money as I’d like,” Fletcher said. “It’s an inconvenience. I feel like in a way that’s the price I have to pay for going to the school that I love and getting the awesome experience I have at IU.”
