Student Loan Debt Impacts Retirement Savings
A new report from the Employee Benefit Research Institute (EBRI) reveals that individuals in their 40s with student loan debt have median retirement account balances approximately 45% lower than those without such debt. Financial advisors emphasize the importance of integrating student loans into broader financial planning, rather than viewing them as an all-or-nothing issue. The average student loan debt is over $43,000 according to Education Data Initiative, though some clients owe significantly more due to past federal Grad PLUS Loan programs that allowed graduate students to borrow up to the full cost of attendance. These loans were discontinued for new borrowers in July 2026. Experts suggest exploring loan forgiveness options and employer-sponsored retirement plans tied to student debt payments as potential solutions. Additionally, advisors recommend evaluating financial aid offers from multiple institutions when choosing a college.
