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.
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.
December 27, 2013 |
Guess how many Americans correctly answered this basic financial question: Is the stock of a single company usually safer than a mutual fund? A) 100% B) 80% C) 60% D) None of the above. The right answer is D. Barely 1 in 2 people knew that a single stock is not safer than a mutual fund, which holds many stocks. The question, included in a survey by a pair of college professors, underscores a fundamental problem facing millions of Americans. At a time when the world of personal finance is increasingly complex - and when people are more responsible than ever for their own financial future - Americans' understanding of basic concepts is sorely lacking.
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 10, 2014 |
Last October, in between arguments over the debt ceiling, the federal government somehow found time to send me an email. My student loan payment was 70 days past due, the message read, so the government had negatively reported me to each major credit bureau and would continue to report me until my account was brought current. I'm betting the government sent out a lot of those letters to people like me: college graduates from middle-class families who didn't qualify for much in the way of scholarship aid and had parents who couldn't afford to pay for their schooling.