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posted by cmn32480 on Wednesday April 05 2017, @05:22AM   Printer-friendly
from the cha-ching dept.

Recent college graduates who borrow are leaving school with an average of $34,000 in student loans. That's up from $20,000 just 10 years ago, according to a new analysis from the Federal Reserve Bank of New York.

In that report, out this week, the New York Fed took a careful look at the relationship between debt and homeownership. For people aged 30 to 36, the analysis shows having any student debt significantly hurts your chances of buying a home, compared to college graduates with no debt. The cliche of "good debt" notwithstanding, the consequences of borrowing are real, and they are lasting.

The report paints a mixed picture of how student borrowing has evolved over the last decade, since the financial crisis. There are some bright spots: For example, student loan defaults peaked five years ago and have declined ever since.

And repayment seems to have slowed down among high-balance borrowers —those who owe $75,000 or more. Meaning, after 10 years, they have paid down only one-quarter to one-third of what they owe.

On the face, this isn't necessarily good. But taken alongside the decline in defaults, Fed president William Dudley said in a press briefing Monday, it reflects something good. That is, graduate students, in particular, are signing up for government programs intended to help make payments more affordable.

Source: NPR


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  • (Score: 0) by Anonymous Coward on Wednesday April 05 2017, @06:47AM (2 children)

    by Anonymous Coward on Wednesday April 05 2017, @06:47AM (#489046)

    pay more taxes

    said no one ever.

  • (Score: 3, Interesting) by Gaaark on Wednesday April 05 2017, @05:35PM

    by Gaaark (41) on Wednesday April 05 2017, @05:35PM (#489231) Journal

    Said i, here and now: I will pay higher taxes for intelligent things. I am Canadian and pay high taxes for free health care: i use it little and abuse it none... Luckily i am fairly healthy, but if i was to get cancer i would be cared for, for free.

    My wife seems to be more 'fragile' than me, but she still uses the system sparely.
    My son was born 3 months early, was 1lb, 12 Oz at birth.... He got great care and did well, but almost died when his calcium levels dropped to almost nil and he stopped breathing and his heart stopped: did this contribute to his autism??? Maybe it contributed to his not being at grade level,maybe just being born early did it. Who know's.
    He is now being cared for, communication devices, et al. for free (taxes paid).

    As, i think Takyon pointed out, our system is as 'communist' as the American soldier healthcare system: they are cared for for free.

      I will pay extra for intelligent things, will protest things like other taxes for welfare people to sit on their asses and drink beer.

    --
    --- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
  • (Score: 0) by Anonymous Coward on Wednesday April 05 2017, @11:10PM

    by Anonymous Coward on Wednesday April 05 2017, @11:10PM (#489407)

    I say it every election day. The only way the people I vote for can enact the changes that convince me to vote for them is to tax people like me and richer more.