According to a recent study performed by data mogul CoreLogic, Millennial renters (aged 20-34) that possess student loan debt, incidentally also have higher credit scores than those without student loans.

This may come as somewhat of a shock, with all the banter about student loans burdening Millennials and holding them back from many milestones that previous generations have been able to achieve (i.e. home ownership, investing for retirement etc….).

CoreLogic’s data analysis included information that was provided on rental applications and the applicants’ credit history (from credit bureaus), in order to determine if there was a correlation between student loan debt and credit scores.

The analysis concluded that:

“Student loan debt did not prevent millennials from access to credit even though it may delay their homebuying decisions.

In fact, those with a higher amount of debt actually had higher credit scores.

“Renters with student loan debt have higher average credit scores than those without; and those with higher debt amounts have higher average credit scores than those with lower student loan debt amounts.”

Bottom Line

Millennials are on track to become the most educated generation in our nation’s history, but have accumulated a pretty big bill, in order to obtain this education. There is however light at the end of the tunnel:

“Despite the fact that student loan debt has grown into the nation’s second largest consumer debt, following mortgage, and has created a significant financial burden for millennials, it does not appear to prevent millennials from accessing credit.”