Student Debt Crisis http://studentdebtcrisis.org Your One Stop Hub For Student Debt Issues Mon, 08 Feb 2016 19:16:47 +0000 en-US hourly 1 Gallup : Americans’ Big Debt Burden Growing, Not Evenly Distributed http://studentdebtcrisis.org/gallup-americans-big-debt-burden-growing-not-evenly-distributed/ http://studentdebtcrisis.org/gallup-americans-big-debt-burden-growing-not-evenly-distributed/#comments Fri, 05 Feb 2016 17:44:35 +0000 http://studentdebtcrisis.org/?p=4349 Estimates of Americans’ debt burden abound, and unfortunately, they’re almost all different. But one thing is clear: Americans are carrying a lot of debt, especially millennials, according to Gallup analysis. Perhaps the most surprising finding from Gallup’s analysis is just how few Americans account for that mountain of consumer debt. For example, three out of […]

The post Gallup : Americans’ Big Debt Burden Growing, Not Evenly Distributed appeared first on Student Debt Crisis.

]]>
Estimates of Americans’ debt burden abound, and unfortunately, they’re almost all different. But one thing is clear: Americans are carrying a lot of debt, especially millennials, according to Gallup analysis.

Perhaps the most surprising finding from Gallup’s analysis is just how few Americans account for that mountain of consumer debt. For example, three out of four U.S. adults (76%) report that they have at least one credit card, but, on average, Americans have 3.4 of them. The percentage of Americans who have credit cards is lowest among millennials (65%) and highest among traditionalists (85%), with Gen Xers (78%) and baby boomers (83%) in between.

Though 76% of U.S. adults report having at least one credit card, just under half of Americans (48%) carry credit card debt, with fewer traditionalists (32%) and more Gen Xers (61%) carrying credit card debt. The Generation X finding isn’t surprising, given that they are in their prime child-rearing years and that they have more cards than any other group (4.5).

About two in 10 Americans (19%) report having student loan debt, with 35% of millennials and 25% of Gen Xers saying they do. Gen Xers hold the largest average student loan balances with over $30,000 outstanding.

Student Loan Debt Situation Dire for Many Millennials and Gen Xers

There has been extensive media coverage of the student loan debt crisis, and Gallup analysis suggests that the situation is indeed dire for the one-third of millennials (35%) and one-quarter of Gen Xers who carry student loan debt. But the ‘crisis’ does not appear to extend very deeply into any generation.

Some have argued that carrying student loan debt might constrain people from making other major purchases, such as buying a home or a car. But consistent with 2014 findings from the Pew Research Center, Gallup finds that U.S. adults who carry student loan debt are significantly more likely to also have an auto loan (47%) than those with no student loan debt (29%). This pattern holds true across all generations, though the difference is smallest among Gen Xers (49% who have student and auto loan debt vs. 44% who do not have student and auto loan debt) and largest among baby boomers (52% vs. 30%) and millennials (44% vs. 23%)…

Continue Reading at Hellenic Shipping News…

 

The post Gallup : Americans’ Big Debt Burden Growing, Not Evenly Distributed appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/gallup-americans-big-debt-burden-growing-not-evenly-distributed/feed/ 0
Is Today’s Student Loan Crisis Tomorrow’s Retirement Crisis? http://studentdebtcrisis.org/is-todays-student-loan-crisis-tomorrows-retirement-crisis/ http://studentdebtcrisis.org/is-todays-student-loan-crisis-tomorrows-retirement-crisis/#comments Fri, 05 Feb 2016 17:33:59 +0000 http://studentdebtcrisis.org/?p=4345 For all the jokes about baby boomers having to eat dog food in retirement, it’s beginning to look like millennials will be lucky to afford even the store brand. The problem is their student debt. Experts have worried for some time about the impact millennials’ historically high levels of debt (currently averaging $31,000 at graduation) […]

The post Is Today’s Student Loan Crisis Tomorrow’s Retirement Crisis? appeared first on Student Debt Crisis.

]]>
For all the jokes about baby boomers having to eat dog food in retirement, it’s beginning to look like millennials will be lucky to afford even the store brand.

The problem is their student debt.

Experts have worried for some time about the impact millennials’ historically high levels of debt (currently averaging $31,000 at graduation) could have on their retirement savings.

Now, in a paper released this week, the Center for Retirement Research at Boston College has attempted to quantify the problem. And the result isn’t pretty.

 A majority of grads could be headed for trouble, this new study finds.


The center calculates what it calls the National Retirement Risk Index (NRRI), an estimate of how many households won’t be able to maintain their standard of living after they retire. The index has been rising steadily since the early 1980s, starting at 31% in 1983 and peaking at 53% in 2010. As of 2013, the most recent year available, it stands at 52%.

Six Americans out of every 10 might not be able to support themselves in the style they’re accustomed to when retirement rolls around.

That’s alarming enough. But if you factor in student debt, the center says, the percentage would rise to 60.1%. Put another way, six Americans out of every 10 might not be able to support themselves in the style they’re accustomed to when retirement rolls around…

Continue Reading at TIME…

 

The post Is Today’s Student Loan Crisis Tomorrow’s Retirement Crisis? appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/is-todays-student-loan-crisis-tomorrows-retirement-crisis/feed/ 0
All of Your Federal Student Loan Repayment Options in One Chart http://studentdebtcrisis.org/all-of-your-federal-student-loan-repayment-options-in-one-chart/ http://studentdebtcrisis.org/all-of-your-federal-student-loan-repayment-options-in-one-chart/#comments Fri, 05 Feb 2016 17:25:37 +0000 http://studentdebtcrisis.org/?p=4342 Six months after you graduate (or otherwise leave college), you’ll typically be placed into a standard 10-year repayment plan with 120 equal monthly payments. If you earn enough to pay off your loans in this period or less, do it—unless you work in public service. (More on that in a minute.) You’ll end up saving […]

The post All of Your Federal Student Loan Repayment Options in One Chart appeared first on Student Debt Crisis.

]]>
Six months after you graduate (or otherwise leave college), you’ll typically be placed into a standard 10-year repayment plan with 120 equal monthly payments. If you earn enough to pay off your loans in this period or less, do it—unless you work in public service. (More on that in a minute.) You’ll end up saving thousands of dollars in interest, compared with other federal plans.

If you do work in public service, enroll in an income-driven plan, so that you can take advantage of a policy that will forgive any outstanding debt after 10 years.

If you’re struggling to pay your bills each month, you also should consider applying for an income-driven plan. There are five types, but the newest one—REPAYE—is the most generous, and available to the greatest number of people, so it’s likely to be your best option. Plus, it has no income-level qualifications, meaning anyone can enroll.

To find the right plan for you, start by visiting the National Student Loan Data System to track down the type of loan you currently have, the interest rate you’re paying, and how much you still owe…

Continue Reading at TIME…

Screen Shot 2016-02-05 at 9.19.54 AM

The post All of Your Federal Student Loan Repayment Options in One Chart appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/all-of-your-federal-student-loan-repayment-options-in-one-chart/feed/ 0
U.S. Senate Looks for Solution to High Student Loan Debt http://studentdebtcrisis.org/u-s-senate-looks-for-solution-to-high-student-loan-debt/ http://studentdebtcrisis.org/u-s-senate-looks-for-solution-to-high-student-loan-debt/#comments Fri, 05 Feb 2016 17:21:19 +0000 http://studentdebtcrisis.org/?p=4337 Senators from Wisconsin to Hawaii have started a campaign in Congress to give college affordability the attention they believe it deserves so more young adults can have a shot at a higher education. It’s the question many student face when going off to college. How am I going to pay for this? For students at […]

The post U.S. Senate Looks for Solution to High Student Loan Debt appeared first on Student Debt Crisis.

]]>
Senators from Wisconsin to Hawaii have started a campaign in Congress to give college affordability the attention they believe it deserves so more young adults can have a shot at a higher education.

It’s the question many student face when going off to college. How am I going to pay for this? For students at Drake University in Des Moines, it’s a big concern.

“I’m currently working so I can help pay for that,” Drake University Freshman Maddie Sell said.

It’s something Hawaii Senator Mazie Hirono understands all too well. “I paid this my own way through undergraduate and graduate school I had debt, it took me 15 years to pay off my law school loans,” Hirono said.

She said student debt is raising concern from too many American families, even starting at an early age.

“Even in fifth grade they’re worrying about how their parents are going to send them to college,” Hirono said.

 

That’s why she joined the #inthered campaign and signed on to the “Reducing Educational Debt” Act. In it, she wants to see continued support for Pell grants, which she says half of students who go to college rely upon…

Continue Reading at KCRG…

The post U.S. Senate Looks for Solution to High Student Loan Debt appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/u-s-senate-looks-for-solution-to-high-student-loan-debt/feed/ 0
Is this robocall illegal? The line blurs for people with student debt http://studentdebtcrisis.org/is-this-robocall-illegal-the-line-blurs-for-people-with-student-debt/ http://studentdebtcrisis.org/is-this-robocall-illegal-the-line-blurs-for-people-with-student-debt/#comments Fri, 05 Feb 2016 17:16:00 +0000 http://studentdebtcrisis.org/?p=4333 Companies that collect student loan payments on behalf of the Department of Education are allowed to robocall consumers. When Sam Adler-Bell started receiving calls last summer from numbers he didn’t recognize with area codes in “weird little towns” offering to help him pay off his federal student loans, he was both intrigued and skeptical. He’s […]

The post Is this robocall illegal? The line blurs for people with student debt appeared first on Student Debt Crisis.

]]>
Companies that collect student loan payments on behalf of the Department of Education are allowed to robocall consumers.

When Sam Adler-Bell started receiving calls last summer from numbers he didn’t recognize with area codes in “weird little towns” offering to help him pay off his federal student loans, he was both intrigued and skeptical.

He’s a policy associate for the Century Foundation, a nonpartisan research organization focused on education, the economy and other topics, and he remembers thinking it didn’t make sense that a call about federal student debt relief would come from a little town in Minnesota instead of, say, Washington, D.C. And yet, “when I answered it, I was initially convinced,” he said, but not convinced enough to sign up for the offer.

After some research, Adler-Bell, 25, later discovered that the call was from a student debt relief company, part of a burgeoning industry of what some consumer advocates and law-enforcement officials have labeled scams that offer to help federal student loan borrowers better manage their debt for a fee by enrolling them in government programs they could otherwise access for free.

“I’m a pretty savvy consumer, I think, and I research privacy and surveillance policy for a living,” Bell said in an interview recalling the experience. “That being said, when somebody tells me ‘your federal loans have been flagged for this debt reduction,’ for an instant I think, ‘oh wow that’s great.’”

Adler-Bell believes the company was using an automated device to call him — also known as robo-dialing — and continued to pester him about once a week for the next few months. Though it’s hard to say exactly how many consumers have received similar calls, a review of several lawsuits filed within the last year as well as interviews with lawyers and regulators indicates student debt relief companies may be increasingly using robocalls to lure consumers, in some cases even calling people who have no student loans or who have already paid them off, claiming they can slash their debt…

Continue Reading at Market Watch…

The post Is this robocall illegal? The line blurs for people with student debt appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/is-this-robocall-illegal-the-line-blurs-for-people-with-student-debt/feed/ 0
College is the new cable bundle. Do students deserve a ‘Netflix?’ http://studentdebtcrisis.org/college-is-the-new-cable-bundle-do-students-deserve-a-netflix/ http://studentdebtcrisis.org/college-is-the-new-cable-bundle-do-students-deserve-a-netflix/#comments Fri, 05 Feb 2016 17:07:50 +0000 http://studentdebtcrisis.org/?p=4330 College has a lot in common with your cable TV package, according to Michael Horn, a principal consultant at innovation agency Entangled Solutions. As schools plow money into new dorms, administrative costs and sports stadiums, some students find themselves paying for “channels” they have no use for. Horn is co-chairing a new group to make “cutting the cord” a viable option for students who […]

The post College is the new cable bundle. Do students deserve a ‘Netflix?’ appeared first on Student Debt Crisis.

]]>
College has a lot in common with your cable TV package, according to Michael Horn, a principal consultant at innovation agency Entangled Solutions. As schools plow money into new dorms, administrative costs and sports stadiums, some students find themselves paying for “channels” they have no use for. Horn is co-chairing a new group to make “cutting the cord” a viable option for students who find college painfully expensive and poorly suited to their needs.

“You really want just the accounting degree and you also get the football team alongside it,” Horn said. “You’re paying for things that you will never ever use. It’s not tailored to actual needs.”

The task force is creating a nonprofit to develop modern standards for ensuring the quality of a higher education at a decent price. Horn says the existing accreditation system is broken and hampers innovative programs that could address the affordability issue. He says a fresh take on certification will open the door for the Airbnbs and Ubers of higher education.

While TV junkies have seen cheap alternatives to cable bundles, such as Netflix,  spring up, students have not seen many options in the higher education space, which remains largely untouched by disruption. And students are paying for it. Costs continue to rise. Student debt has doubled since 2008, reaching $1.3 trillion.

“No one is addressing the real issue, which is, why does [college] cost $30,000 a year and increase by double digits every year?” said Western Governors University President Bob Mendenhall, who is a member of the group. “How do we get more efficient and effective in education?”…

Continue Reading at Washington Post…

The post College is the new cable bundle. Do students deserve a ‘Netflix?’ appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/college-is-the-new-cable-bundle-do-students-deserve-a-netflix/feed/ 0
Obama Ridiculed For Sluggish Moves On College Accreditation http://studentdebtcrisis.org/facebook-twitter-pinterest-linkedin-email-comments-obama-ridiculed-for-sluggish-moves-on-college-accreditation/ http://studentdebtcrisis.org/facebook-twitter-pinterest-linkedin-email-comments-obama-ridiculed-for-sluggish-moves-on-college-accreditation/#comments Fri, 05 Feb 2016 16:54:33 +0000 http://studentdebtcrisis.org/?p=4328 In November, following the failure of an accredited for-profit college chain that state and federal regulators had accused of mass fraud, then-Education Secretary Arne Duncan gave his top deputies a homework assignment: Find ways the department could reform college accreditation to prevent future debacles like the collapse of Corinthian Colleges Inc. Duncan had called accreditors […]

The post Obama Ridiculed For Sluggish Moves On College Accreditation appeared first on Student Debt Crisis.

]]>
In November, following the failure of an accredited for-profit college chain that state and federal regulators had accused of mass fraud, then-Education Secretary Arne Duncan gave his top deputies a homework assignment: Find ways the department could reform college accreditation to prevent future debacles like the collapse of Corinthian Colleges Inc.

Duncan had called accreditors — private groups paid by colleges to evaluate whether schools are good enough to continue receiving taxpayer money in the form of federal student loans and grants — “watchdogs that don’t bite.”

Over the last two years, federal regulators have sued for-profit chains Corinthian Colleges, ITT Educational Services Inc. and DeVry Education Group, alleging they misled prospective students — who collectively have taken on billions of dollars in federal student loans — about their future career prospects. Despite the allegations, the companies’ schools maintained accreditation.

And there’s no fix in sight. Duncan’s former deputies’ Jan. 20 response, disclosed Thursday, largely amounts to a request for more time and a promise to shuffle more paperwork between more offices at the U.S. Department of Education.

The Education Department wields tremendous power over accreditors…

Continue Reading at Huffington Post…

 

The post Obama Ridiculed For Sluggish Moves On College Accreditation appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/facebook-twitter-pinterest-linkedin-email-comments-obama-ridiculed-for-sluggish-moves-on-college-accreditation/feed/ 0
Here’s the Toll That Student Debt Can Take on Retirement http://studentdebtcrisis.org/heres-the-toll-that-student-debt-can-take-on-retirement/ http://studentdebtcrisis.org/heres-the-toll-that-student-debt-can-take-on-retirement/#comments Thu, 04 Feb 2016 19:40:16 +0000 http://studentdebtcrisis.org/?p=4326 Delaying homeownership and limiting savings because of high debt loads can cost you when it’s time to retire, says a new paper. Student debt levels have have mushroomed, and Americans have saved little for retirement. The relationship between those two things is not obvious. So just how does having a big slug of student debt actually […]

The post Here’s the Toll That Student Debt Can Take on Retirement appeared first on Student Debt Crisis.

]]>
Delaying homeownership and limiting savings because of high debt loads can cost you when it’s time to retire, says a new paper.

Student debt levels have have mushroomed, and Americans have saved little for retirement. The relationship between those two things is not obvious. So just how does having a big slug of student debt actually hurt the ability to prepare for a comfortable retirement?

To find out, Alicia Munnell, director of the Center for Retirement Research at Boston College (CRR), and her colleagues tweaked a measure developed by CRR to quantify America’s retirement prospects. Their National Retirement Risk Index (NRRI) uses data from the Federal Reserve’s Survey of Consumer Finances to compare how much income people are on track to replace in retirement with how much income they will need to maintain their standard of living.

The index shows that 52 percent of Americans are at risk of a shortfall in retirement, based on data that includes an average student debt load of $18,000. If you raise that debt burden to $31,000—the 2013 average for recent college students—and increase the universe of people with student loans to mirror the current situation, the outlook looks grimmer.

Continue Reading at Bloomberg…

By: Suzanne Woolley

The post Here’s the Toll That Student Debt Can Take on Retirement appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/heres-the-toll-that-student-debt-can-take-on-retirement/feed/ 0
3 Charts That Show Just How Dire The Student Debt Crisis Has Become http://studentdebtcrisis.org/facebook-twitter-pinterest-linkedin-email-comments-3-charts-that-show-just-how-dire-the-student-debt-crisis-has-become/ http://studentdebtcrisis.org/facebook-twitter-pinterest-linkedin-email-comments-3-charts-that-show-just-how-dire-the-student-debt-crisis-has-become/#comments Thu, 04 Feb 2016 19:34:45 +0000 http://studentdebtcrisis.org/?p=4319 President Barack Obama has said that a college degree “has never been more valuable.” But if you borrow to finance your degree, the immediate returns are the lowest they’ve been in at least a generation, new data show. Wages for the typical recent college graduate working full time have risen just 1.6 percent over the […]

The post 3 Charts That Show Just How Dire The Student Debt Crisis Has Become appeared first on Student Debt Crisis.

]]>

President Barack Obama has said that a college degree “has never been more valuable.” But if you borrow to finance your degree, the immediate returns are the lowest they’ve been in at least a generation, new data show.

Wages for the typical recent college graduate working full time have risen just 1.6 percent over the last 25 years, after adjusting for inflation, according to the Federal Reserve Bank of New York.

Meanwhile, student debt burdens for the typical bachelor’s degree recipient who borrowed for college have increased about 163.8 percent, according to Education Department data analyzed by Mark Kantrowitz, a financial aid expert; Brad Hershbein, an economist at the W.E. Upjohn Institute for Employment Research; and The Huffington Post.

In 1990, the typical college student graduated with debt equivalent to 28.6 percent of her annual earnings. By 2015, that number had shot up to 74.3 percent, data show.

Student debt at graduation for the typical bachelor’s degree recipient could exceed annual wages by 2023, if both figures continue to grow at the same annual rate of the last 25 years, according to a HuffPost analysis…

 

Continue Reading at Huffington Post…

The post 3 Charts That Show Just How Dire The Student Debt Crisis Has Become appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/facebook-twitter-pinterest-linkedin-email-comments-3-charts-that-show-just-how-dire-the-student-debt-crisis-has-become/feed/ 0
Have student loans created a new generation of payday loan addicts? http://studentdebtcrisis.org/have-student-loans-created-a-new-generation-of-payday-loan-addicts/ http://studentdebtcrisis.org/have-student-loans-created-a-new-generation-of-payday-loan-addicts/#comments Thu, 04 Feb 2016 19:26:08 +0000 http://studentdebtcrisis.org/?p=4317 My wife and I were watching a news program the other day when a commercial for a prescription medicine piqued my interest. The drug was designed to treat an ailment that, as it turns out, comes from taking another prescription medicine made to treat something else. The absurdity of that inspired me to think about […]

The post Have student loans created a new generation of payday loan addicts? appeared first on Student Debt Crisis.

]]>
My wife and I were watching a news program the other day when a commercial for a prescription medicine piqued my interest.

The drug was designed to treat an ailment that, as it turns out, comes from taking another prescription medicine made to treat something else.

The absurdity of that inspired me to think about other instances where this might also be the case. Because of my predisposition to view such things in a financial context, I recalled a report I’d recently read on consumer-financing trends.

It touched upon an important reason why a rapidly growing number of 20- and 30-year-olds are signing up for loans from alternative finance companies — firms that pitch payday, tax-refund, auto-title and pawn-shop loans: Because their other debt obligations are leaving them short on funds.

Researchers at George Washington University’s Global Financial Literacy Excellence Center analyzed a 5,500 subsample of millennials who participated in the Financial Industry Regulator Authority’s (FINRA) 2012 National Financial Capability Study. They found that 42% of that subsample are currently or expect to soon become alternative financing company customers…

Continue Reading at KMTV…

By: KMTV

 

The post Have student loans created a new generation of payday loan addicts? appeared first on Student Debt Crisis.

]]>
http://studentdebtcrisis.org/have-student-loans-created-a-new-generation-of-payday-loan-addicts/feed/ 0