Posts Tagged ‘student loan debt’

73% of Americans Have Financial Regrets

Posted on June 06, 2017 by Laura Lam

Nearly 3-in-4 U.S. adults have financial regrets, according to a new report. The most common is not saving for retirement early enough, followed by not saving enough for emergency expenses and taking on too much credit card debt. Taking on too much student loan debt is fourth, however, it tops the list among older millennials (27-36 year-olds). Fifth overall is not saving enough for your children’s education and sixth is buying more house than you could afford. Baby Boomers are the most likely to regret not saving for retirement earlier; remorse over this issue grows steadily from age 18-62. It’s…

Student Loan Debt May Have Adverse Long-Term Impact

Posted on April 17, 2017 by Laura Lam

Rising student loan debt in the United States could ultimately hurt overall home ownership and consumer spending and erode colleges’ and universities’ ability to elevate lower-income students.  New York Fed President William Dudley, an influential monetary policymaker who was citing research from his institution, pointed to rising costs of higher education and student debt burdens as culprits in the troubling trend. Overall U.S. household debt is expected to surpass its pre-recession high later this year. Proportionally, Americans have shifted away from housing-related debt and toward auto and student loan debt, with aggregate student loan balances $1.3 trillion at the end of last year, up…

Millennials Locked Out of Housing Market Again

Posted on March 14, 2017 by Laura Lam

For quite some time, we’ve heard that Millennials have put off buying a home.  These reasons include student debt load, tighter lending standards, and simply not wanting to sacrifice everything for a chance to own the “American Dream.”  Whether Millennials actually want to buy a home or not, there has to be homes available to purchase.  Currently, young home shoppers have a very shallow pool of options – and the current inventory shortage is predicted to stick around through 2017. Daren Blomquist, senior vice president at ATTOM Data Solutions, identified 3 key factors keeping housing inventory in a drought, barring entrance for aspiring…

States With the Most Household Debt

Posted on March 11, 2016 by Laura Lam

Total U.S. household debt continued to climb in the fourth quarter of 2015. According to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, households added $51 billion of debt in the final three months of the year, pushing total indebtedness to $12.12 trillion at the end of the quarter. Mortgage debt remains the leading contributor by far, but student loan debt also continued its ascent. How much does the average household owe? Nationwide, the per-capita debt is about $46,170, the Federal Reserve Bank of New York said in its most recent report. That can…

Consumer Debt Rises with Age

Posted on March 03, 2016 by Laura Lam

Debt held by consumers in the U.S. as they age is rising, according to an analysis by the Federal Reserve Bank of New York.  From 2003 to 2015, debt of borrowers between ages 50 and 80 increased by approximately 60%, according to the Fed’s researchers. Researchers also found that aggregate debt of younger borrowers declined modestly from 2003 to 2015 “with a debt portfolio reallocation away from credit card, auto, and mortgage debt, toward student debt.”  “This shifting of debt from younger to older borrowers is of obvious relevance to markets fueled by consumer credit. It is also relevant from a loan performance perspective…

Falling Behind: Grim Outlook for Student Loans

Posted on April 22, 2015 by Saldutti

More borrowers are failing to make payments on their student loans five years after leaving college, painting a grim picture for borrowers, according to the Federal Reserve Bank of New York.  Student debt continues to increase, especially for people who took out loans years ago. Those who left school in the Great Recession, which ended in 2009, had particular difficulty with repayment, with many defaulting, becoming seriously delinquent or not being able to reduce their balances, said the New York Fed. Only 37% of borrowers are current on their loans and are actively paying them down, and 17 percent are…

What's in Your (Consumer Loan) Wallet?

Posted on October 23, 2014 by Saldutti

A new TransUnion study found that the consumer loan wallet – the composition of loans that people typically carry – has materially changed for both the youngest and oldest segments of the population during the last decade.  (The consumer loan wallet consists of the total of mortgage, auto, card, home equity line of credit, student and all other loan type categories.) The study found that student loans have left the greatest imprint on those consumers ages 20-29, with their share of the consumer wallet nearly tripling in the last nine years. In 2005, student loans made up 12.9% of the total loan…

Recovery Aftermath: The Decline of New Households

Posted on May 22, 2014 by Saldutti

Americans are swimming in debt and that’s holding back the economy, says Cardiff Garcia, U.S. editor of financial news site, FT Alphaville. By the end of the first quarter U.S. households were $11.65 trillion in debt, according to the New York Fed. That’s bigger than the GDP of any country or region in the world except the U.S. and the European Union. The fastest growing debt category: student loans, which top $1 trillion. Pew Research reported that four in ten U.S. households (37%) headed by an adult younger than 40 have student debt. Households with student loan debt have a…

$1 trillion student loan debt widens US wealth gap

Posted on April 21, 2014 by Saldutti

Here’s a sobering statistic – there are roughly 37 million young workers in the U.S. saddled with $1 trillion in student debt, who may never catch up with wealthy peers who began life after college free from the burden. The disparity, experts say, is contributing to the widening of the gap between rich and everyone else in the country. “If you graduate with a B.A. or doctorate and you get the same job at the same place, you make the same amount of money,” said William Elliott III, director of the Assets and Education Initiative at the University of Kansas….

Student Loans and Home Mortgages Don't Mix

Posted on February 26, 2014 by Saldutti

An April 2013 New York Fed study found student loans were preventing many recent graduates from buying their first home. Now another study, from the home loan industry, has similar conclusions. An analysis by the Mortgage Bankers Association (MBA) found that loan applications for home purchases have slipped nearly 20% in the past four months compared with the same period a year earlier. “This is a huge issue for us,” David Stevens, chief executive of the MBA. “Student debt trumps all other consumer debt. It’s going to have an extraordinary dampening effect on young peoples’ ability to borrow for a…