Fidelity Investments has released its 2026 State of Student Debt study, finding that student loan debt is causing significant financial and psychological strain that leads many borrowers to delay major life milestones. According to the research, 32% of current borrowers have postponed home purchases, with rates even higher among younger demographics at 37% for Gen Z and 36% for Millennials. Some 41% of borrowers report weekly sleep loss or anxiety related to their finances.
The study also reveals a stark retirement savings gap, with participants over 50 who carry student debt averaging 30% lower 401(k) balances than their debt-free peers. Borrowers with student debt are twice as likely to carry medical debt. To address these challenges, Fidelity is promoting workplace benefits including Student Debt Direct, which enables employer payments to loan servicers and has been shown to reduce employee turnover by 26%, and Student Debt Retirement, which allows employer contributions to retirement accounts based on loan payments, averaging $1,900 annually per participant.