April 18, 2013 |
Looming student debt could hamper future economic growth as young people tamp down on spending and borrowing in the years to come. Compared with counterparts not saddled with student loans, these young workers are less likely to take out mortgages or car loans, according to a study by the Federal Reserve Bank of New York. It's a potentially worrying sign that these workers may be less optimistic about their future earning potential because of the millstone of student loans. Last year, 43% of 25-year-olds had incurred at least some student debt, up from 25% in 2003, the study said.
February 7, 2012 |
Student-loan debt is pushing an increasing number of young people and their parents toward bankruptcy, according to a survey released Tuesday. More than four-fifths of bankruptcy attorneys say they've seen a notable jump in the number of potential clients with student-loan debt in the last few years, with nearly half the lawyers reporting a significant increase in such cases, according to the survey by the National Assn. of Consumer Bankruptcy Attorneys. Nearly one-quarter of the attorneys surveyed say the number of potential student-loan clients have risen 50% to 100%, while another 39% of lawyers report spikes of 25% to 50%. Student debt is rising for obvious reasons: steadily spiraling college costs, financial-aid cutbacks at public universities and a stubbornly weak economy that's making it difficult for graduates to find jobs.
September 27, 2012 |
The share of American households affected by student debt has more than doubled in the last two decades, soaring from 9% in 1989 to a record of nearly one in five in 2010. The 19% of households weighed down by school loans is higher even than 2007, when 15% owed money for their education, according to a Pew Research Center analysis of government data . Young people are especially hard hit, as are poorer Americans. Among households headed by someone younger than age 35, four in 10 have student debt on the books.
November 12, 2012 |
VACAVILLE, Calif. - His jaw clenched beneath a blue surgeon's mask, Opanin Gyaami jerks his right arm and pulls out a prize: the decayed tooth of patient Larry Butler, also known as state prison inmate J22312. By the time he is done, Gyaami's smock and mask are spotted with the inmate's blood. He gently pats Butler on the shoulder and wishes him well. The 71-year-old dentist reports to the state prison in Vacaville day after day, long past retirement age. He wishes he could have hung up his drill and forceps years ago, but he's still paying off a student loan.
July 6, 2012 |
NEW YORK -- Like most medical students, Michael Gott has a lot of student debt. Unlike most medical students, his family possesses the baseball that Yankees slugger Lou Gehrig hit for a home run during the 1928 World Series. Not for long, though, because Gott's mother is selling the ball to help pay off her son's loans. By early Friday, bidding for the famous ball had reached more than $33,000, but Hunt Auctions of Exton, Penn., which is handling the sale, expects to fetch $100,000 to $200,000 for the ball, which flew into the bleachers on Oct. 5, 1928, in the second game of the series.
February 12, 2013 |
The student-loan market is not in a bubble and going into debt to pay for college is still worth it, according to a new report. But those are the rare bits of good news in the otherwise dispiriting report on students' escalating college debt. While concluding that diplomas are worth the money, the study by Wells Fargo economists found that the payoff may not come for years because graduates are squeezed by several factors. Tuition costs are rising faster than incomes. Graduates are having trouble finding solid jobs.