- Student loan debt is delaying homeownership and other milestones for nearly one in three borrowers, with larger impacts on Generation Z and Millennials.
- Financial and emotional stress remains widespread, with most borrowers reporting anxiety, stress or feeling overwhelmed by their finances.
- Fidelity research indicates that employer-sponsored student debt benefits can materially improve retirement readiness and employee retention.
Student loan debt continues to impact Americans’ financial lives, often leading to difficult trade-offs between paying off student loans and investing in the future. New poll from Fidelity Investments He finds that borrowers are delaying homeownership, experiencing stress, and falling behind on retirement savings — patterns that persist across age groups and income levels.
the 2026 Student debt status He studiesbased on a national survey of U.S. adults who are currently paying off student loans, paints a picture of increasing financial stress. Nearly a third of borrowers say their student debt has caused them to delay purchasing a home, while many report frequent anxiety and uncertainty about their long-term financial security.
“The burden of student debt not only takes a financial toll on borrowers, but it also takes an emotional toll,said Jesse Moore, head of student debt at Fidelity Investments. Across Fidelity’s employer client base, Moore said many workers feel forced to choose between reducing debt and saving for future goals.
Homeownership and other milestones have been delayed
According to the survey, 32% of borrowers say student loans have delayed their ability to buy a home. This number rises to 37% among Gen Z borrowers and 36% among Millennials, underscoring how student loan debt significantly impacts workers early in their careers.
The findings are consistent with broader concerns about affordability in the housing market, but the data suggest that student loans remain a clear barrier even as borrowers get older. Fidelity research indicates that more than half of student loan borrowers across the country are still struggling with repayment, limiting their ability to build savings for down payments or qualify for a mortgage.
For many families, this delay extends beyond housing. Fidelity’s analysis indicates that borrowers often postpone other long-term goals, including retirement savings, in order to manage monthly loan payments.
Financial anxiety remains widespread
The survey also highlights the emotional stress associated with student debt. Forty-one percent of borrowers reported feeling anxious about their finances or losing sleep at least weekly. When asked to describe their relationship with money, 34% chose the word “stressful,” while 67% said they felt overwhelmed when managing their personal finances.
These sentiments persist even among borrowers who are making student loan payments. Research from Fidelity indicates that uncertainty (about repayment timelines, interest costs, and competing financial priorities) continues to shape how borrowers view their overall financial health.
The researchers point out that these indicators of stress are important, because chronic financial anxiety can affect decision-making, workplace productivity, and long-term planning.
Declining retirement balances among borrowers
Fidelity’s internal participant data suggests a measurable link between student debt and decreased retirement readiness. Among employees ages 50 and older are those who carry their student loans Average retirement balances are 30% lower than their peers with no student debt. For workers between the ages of 18 and 49, balances are approximately 20% lower.
Borrowers also reported decreased confidence in their retirement readiness and increased uncertainty about how much they need to save. The data reflects a common pattern: Workers often reduce or pause retirement contributions while prioritizing student loan payments, especially early in their careers.
Over time, these lost contributions and lost investment growth can have lasting consequences, especially for borrowers who spend a decade or more repaying their loans.
Employer benefits show a measurable impact
While the survey highlights ongoing challenges, Fidelity’s data also suggests that employer-sponsored student debt benefits could change outcomes for both workers and businesses.
Nearly 45% of borrowers said they would be more likely to stay with their employer if student loan repayment assistance was offered, including 52% of Gen Z borrowers and 47% of Millennials. Employers who use Fidelity’s Debt Direct program — where companies make payments directly to loan servicers — saw employee turnover rates decrease by 26% among participating employees. Collectively, these employers helped workers repay more than $700 million in student loan principal and interest, shortening repayment timelines by three to four years.
Fidelity Student Debt Retirement Program It takes a different approach, allowing employees to earn employer retirement contributions while making student loan payments. Since its launch in early 2024, more than 200 companies have adopted this feature, covering nearly 2 million eligible employees. Participants received an average of $1,900 per year in employer contributions tied to their student loan payments.
Over a typical 10-year payback period, Fidelity estimates that these annual contributions could grow to nearly $200,000 by retirement age, assuming long-term investment growth.
“The benefits of student debt can be especially powerful for employees who are early in their careers“Moore said.”When young workers can repay their loans while also starting to save, it builds confidence and gives them a solid foundation for long-term financial wellness.“
What student loan borrowers can take out
The findings underscore how student debt continues to shape financial behavior into adulthood.
For borrowers, the data highlights the importance of understanding how loan repayment choices interact with saving, housing decisions, and health care costs. For employers, the survey points to student loan benefits as a tool that can address worker stress while improving retention and long-term financial outcomes.
With student loan repayment still a defining issue for millions of families, Fidelity research suggests that solutions that combine debt reduction and long-term saving may help alleviate some of the pressures — especially for workers who are still early in their financial lives.
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