Impact of college debt may extend beyond students
Meghan and Mike McDevitt were thrilled six months ago when they found an apartment they could afford while paying more than $2,000 a month in college debt.
The Oakmont couple, married for three years, need every break they can get to make ends meet and pay their student loans. They want to have children, but he acknowledges it would be difficult to start a family now.
They're not alone. Experts suspect scenarios such as the McDevitts' contributed to record low birth rates and a stagnant economy, and could have long-term implications for everything from health care to Social Security and workforce development.
“You've heard parents and grandparents say, ‘We started with nothing.' Well, we started with less than nothing. At least we have jobs that we love,” Meghan McDevitt said.
McDevitt, 30, a lab technician who earned a degree in biochemistry from Chatham University in 2009, said she juggles payments of about $1,500 a month on seven student loans with rates of 8, 9 or 10 percent.
Her husband, 27, a kitchen manager in a restaurant, said he pays $504 a month on loans he took out to attend culinary school.
Like thousands of young adults who collectively owe more than $1 trillion in student loans, the McDevitts put their dreams on hold.
According to the Pew Research Center, the U.S. birth rate has fallen since 2007. The rate, defined as the number of children born to every 1,000 women ages 15-44, bottomed out at 62.3 last year, down from its 1957 peak of 122.7.
In Pennsylvania, where the median age is among the highest in the nation, the birth rate was 58.8 in 2012. The rate was lower in Allegheny County at 55.8.
Although no studies demonstrate a clear link between rising student debt and declining birth rates, McDevitt said she and her friends talk about that.
“I know people who have had to put off getting married and having kids,” she said.
The McDevitts said they're making loan payments to build a credit record for the day when they can buy a home. They are saving a little money — “throwing a few dollars into an account every month, so if we can have children someday, they won't have to deal with this,” she added.
Although their loans are higher than many — Meghan McDevitt graduated with almost $100,000 in debt — a survey by the Project on Student Debt estimated Pennsylvania graduates left college with an average of $29,959 in student loans in 2011 and stepped into a struggling economy.
Rising student debt poses problems across the spectrum of society, said Michael Giffin, owner of Ensphere College Planning Services in Upper St. Clair. He said mortgage-sized college debt means fewer young adults can buy homes, new cars or appliances, and that stagnates an economy that depends upon such sales.
“Too many times they are altering plans, dreams, hopes and expectations because of this burden,” Giffin said.
Gretchen Livingston, a senior researcher at Pew, said it is not uncommon for birth rates to decline during a recession. The latest declines occurred on top of years of declines attributed to couples opting for smaller families and women delaying marriage and children.
“But we have some pretty reliable data going back to 1920, and the birth rate has never been this low,” Livingston said, adding that births typically rebound as the economy improves.
Matthew Rouse, associate professor of economics at Susquehanna University in Selinsgrove, said falling birth rates endanger Social Security's solvency.
As recently as 1960, the United States had 5.1 workers for every Social Security recipient, a number that slipped to 2.9 by 2010.
“And if you have a higher percentage of older people in the population who need increased amounts of medical care, that would drive up costs even more than Social Security,” Rouse said.
Debra Erdley is a staff writer for TribTotal Media. She can be reached at 412-320-7996 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Rising East Liberty out of reach for Pittsburgh’s poor
- Water main break floods Baldwin basements
- Bill seeks to give Pittsburgh police license plate info
- Beating victim from McKees Rocks recalled as skilled family man
- Western Pa.’s ties to 2016 White House race extend beyond Santorum
- Tablets for Allegheny County Jail inmates deemed a success
- Filing in Scaife case challenges subpoena request by his children
- $1B rapid bridge replacement across Pa. aims for savings, safety
- Child falls through window in Marshall-Shadeland, taken to Children’s
- Amtrak still working to add bicycle racks to Western Pa. train routes
- Water line bursts at Allegheny General Hospital