Stories
Slash Boxes
Comments

SoylentNews is people

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


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 0) by Anonymous Coward on Wednesday April 05 2017, @12:57PM (7 children)

    by Anonymous Coward on Wednesday April 05 2017, @12:57PM (#489106)

    At least have the sensibility to stop calling it "free" when you mean "subsidized" and many of these semantics arguments would stop.

  • (Score: 4, Insightful) by Phoenix666 on Wednesday April 05 2017, @01:10PM (6 children)

    by Phoenix666 (552) on Wednesday April 05 2017, @01:10PM (#489117) Journal

    The semantics arguments would also be increasingly silly if they were also applied to roads, bridges, railroads, and other infrastructure, which they ought to be. When's the last time a poltroon exploded to his feet to assert that roads ain't free neither, they're paid for by yer taxes dadgummit--so the dern gubmint should git outta the road and bridge socialism and let the free market build 'em.

    You don't hear that because it's so stupid even dunderheads hesitate to utter it. Education and healthcare really ought to enjoy the same shield from stupidity. Why don't they?

    --
    Washington DC delenda est.
    • (Score: 1) by khallow on Wednesday April 05 2017, @01:40PM (3 children)

      by khallow (3766) Subscriber Badge on Wednesday April 05 2017, @01:40PM (#489135) Journal

      The semantics arguments would also be increasingly silly if they were also applied to roads, bridges, railroads, and other infrastructure, which they ought to be. When's the last time a poltroon exploded to his feet to assert that roads ain't free neither, they're paid for by yer taxes dadgummit--so the dern gubmint should git outta the road and bridge socialism and let the free market build 'em.

      No, the poltroons waxing poetic about the "free" education, roads, etc apparently repeatedly need to be reminded that these things cost a lot and excessive spending on those things via public funding can harm a society.

      Education and healthcare really ought to enjoy the same shield from stupidity.

      No, they don't. A classic example of this is the whining about public spending austerity (basically fiscal discipline imposed from outside on countries with extremely high debt). You'll rarely see such a person acknowledge that austerity wouldn't have happened without all the free stuff that was being publicly funded.

      • (Score: 0) by Anonymous Coward on Wednesday April 05 2017, @04:19PM

        by Anonymous Coward on Wednesday April 05 2017, @04:19PM (#489197)

        Yes things cost a lot, and they are being paid for by the people. What is being suggested is that we lower the individual cost by spreading it around the whole country. It is an investment in the future of our society, something I would gladly pay a little more taxes for. Happiness index, health / education indexes, the US falls behind on all of them! Many countries are doing fine with higher taxes and socialized health/education, so your argument is basically "But I'm selfish and don't want to do my part to make the country better!" We tried it your way and it has led to the debt ridden hellhole we are currently in.

      • (Score: 2) by Gaaark on Wednesday April 05 2017, @05:43PM (1 child)

        by Gaaark (41) on Wednesday April 05 2017, @05:43PM (#489239) Journal

        So, if a soldier protecting oil America gets hurt, he shouldn't get free healthcare?

        --
        --- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
        • (Score: 1) by khallow on Wednesday April 05 2017, @08:50PM

          by khallow (3766) Subscriber Badge on Wednesday April 05 2017, @08:50PM (#489337) Journal

          So, if a soldier protecting oil America gets hurt, he shouldn't get free healthcare?

          I'll need more information. Has he stopped beating his wife?

    • (Score: 0) by Anonymous Coward on Wednesday April 05 2017, @01:46PM (1 child)

      by Anonymous Coward on Wednesday April 05 2017, @01:46PM (#489140)

      Libertarians, particularly "anarcho-capitalists", do believe that those things should indeed be handled by the "free market". They make a good case, too.

      • (Score: 2) by joshuajon on Thursday April 06 2017, @03:41PM

        by joshuajon (807) on Thursday April 06 2017, @03:41PM (#489699)

        While the various AnCap memes [imgur.com] do take these positions to absurd conclusions, I can't help but acknowledge that no, in fact they don't make a good case.