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St. Mary's Credit Union BlogFICO: 32% of Millennials Owe $20,000 or More in Student Loans

FICO: 32% of Millennials Owe $20,000 or More in Student Loans

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A new survey from FICO found that 32 percent of Millennials owe $20,000 or more in student loans, while 45 percent owe $7,000 or more on auto loans. Two in five are concerned about their level of debt.

Nearly every Millennial surveyed said that car ownership is a necessity, and 91% prefer the use of one for daily transport.

Around 19% of them would even use a credit card to buy a car.

On the other hand, Millennials view student debt as an impediment.

This is backed up by a recent report from the National Association of Realtors, which found that 71 percent of "non-homeowners" with outstanding student loans feel it is significantly impacting their ability to purchase a home.

It’s interesting that the way Millennials view their debt burden matches the way economists view it: taking on debt (auto loans) can be good for the economy, while other types – specifically student debt – ultimately act as a drag on the economy.

When student debt prevents young adults from buying homes, the entire economy suffers as a result.

Related: Credit Card Tips: Top 10 Financial Mistakes to Avoid in College

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