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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
(Score: 2) by Gaaark on Wednesday April 05 2017, @05:55PM (1 child)
Holy shit.
My daughter has 30k in debt, and i cant believe that. I'd have a dump or two over your debt.
Shit, i just crapped myself.
Then again, if you are good at it an enjoy it,.... It maybe worth it to you. (Disclaimer: my daughter and son in law live with us to help them financially.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
(Score: 2) by Sulla on Wednesday April 05 2017, @06:20PM
I am one of the lucky ones, I only spent three years after graduation to get an entry level job in accounting that four years later has turned into a real breadwinner. My wife and I are also fortunate to have a free place to live (temporarily) while we take care of an ailing grandparent.
The debt load really does postpone "adulthood" if we consider adulthood being home ownership and children.
I personally feel the bigger barrier to success being the acquisition of new job opportunities by temp agencies and the move from perm employees to temps. Where I live on the west coast 80% of accounting/bookkeeping jobs can only be got through temp agencies, with multi-month wait between openings on the other 20%.
Good on you for helping out family like that, really useful in paying down debt. Wish more families extended that chance to their kids.
Ceterum censeo Sinae esse delendam