From buying homes to retirement savings, borrowers say debt is blocking major life goals
A major new report is painting a grim picture of how student loan debt is reshaping the lives of young Americans. According to research released Tuesday by Gallup and the Lumina Foundation, roughly two-thirds of Gen Z borrowers say they have postponed at least one significant life milestone because of what they owe on student loans — a burden that continues to ripple far beyond monthly payment notices.
Student loan debt in the U.S. now exceeds $1 trillion, and the financial pressure has intensified since a pandemic-era payment pause ended last year. Borrowers who have fallen into default are now facing the added threat of wage garnishment, making an already difficult situation even more precarious for those struggling to keep up.
The 5 milestones most commonly put on hold
The data reveals a pattern of delayed adulthood that cuts across nearly every major financial and personal decision young people make. The five most common milestones affected are:
- Saving for retirement
- Going back to school
- Buying a home
- Purchasing a car
- Getting married
Among Gen Z borrowers specifically, 33% say their loans have prevented them from buying a home, and 31% say debt has held them back from purchasing a car — two expenses that many Americans consider basic markers of financial independence.
Gen Z carries the heaviest burden, but older generations aren’t spared
The Gallup and Lumina data makes clear that this is not exclusively a young person’s problem, though younger borrowers feel it most acutely. Gen Z was the most likely of any generation to report delaying at least one life event because of student debt, with each older generation progressively less likely to say the same. Still, even among Baby Boomers, nearly a third — 32% — said student loan obligations had caused them to push back important milestones.
For younger borrowers already navigating one of the most difficult housing markets in recent memory, the compounding pressure is particularly acute. New homebuyers are already spending a far greater share of their income on housing than existing homeowners, and student loan payments are shrinking the pool of money available for down payments and monthly mortgage costs even further.
Americans still believe in higher education — but costs are a growing concern
The second report released Tuesday by Gallup and Lumina offers a broader look at how Americans view the value of a college degree. The findings suggest that confidence in higher education has not collapsed, but faith is being tested by affordability. Cost remains the most widely cited barrier to earning a degree, and the gap between those who believe education is accessible and those who have experienced it firsthand is significant.
Among people currently enrolled in college or certificate programs, only one in ten believe that all people have genuine access to quality, affordable higher education. Among those who never enrolled after high school, that figure drops to just 6%.
The report notes that Americans have not abandoned their belief in higher education, but acknowledges that belief alone is not enough to bridge the gap between aspiration and what people can realistically afford or access.
The methodology behind the numbers
The Gallup Alumni Survey was conducted between Nov. 10 and Dec. 1, drawing responses from more than 1,266 associate degree graduates and 4,667 bachelor’s degree graduates, with a margin of sampling error of ±1.4 percentage points. The broader Lumina-Gallup study was conducted in October 2025 and included more than 14,000 respondents across three groups: current postsecondary students, adults who previously enrolled but did not complete a program, and adults who never enrolled after high school.
Source: Axios, citing Gallup and Lumina Foundation research