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> Since many are burdened with massive student debt, they can’t afford to launch startups... I'm really dubious of this as an explanation. The figure I found h
by matt_wulfeck 10y ago
> Since many are burdened with massive student debt, they can’t afford to launch startups...
I'm really dubious of this as an explanation. The figure I found here[0] says the average debt is $37k. I bet that the median is actually quite lower than that because of how wildly different tuition can cost (private liberal arts versus state college). Either way that's not "massive" and hardly explains a cultural change.
This[1] article calls the group the most debt averse generation ever. Well which is it?
[0] http://blogs.wsj.com/economics/2016/05/02/student-debt-is-about-to-set-another-record-but-the-picture-isnt-all-bad http://blogs.wsj.com/economics/2016/05/02/student-debt-is-ab...
[1] https://www.google.com/amp/www.cnbc.com/amp/2014/09/05/debt-averse-millennials-steer-clear-of-credit-cards.html https://www.google.com/amp/www.cnbc.com/amp/2014/09/05/debt-...
- overgard 10y agoDo you come from a wealthy family? 37k is a lot to pay off when you're just out of school, STEM included. That's like 500-700 a month if you want to pay it off in 3-5 years. That kind of obligation makes it really hard to quit a job.
- matt_wulfeck 10y agoI'm not saying it's not a lot, I'm just saying I'm dubious about it as an explanation for the article's theory. Also, that's the average debt. I believe the median is probably much lower but unfortunately I can't seem to find any research in this area. I would love it if someone pointed me in the right direction.
- dilemma 10y agoYou seem to think that paying off debt is not important. Why?
- HeyLaughingBoy 10y agoOTOH, if you only care about cash flow and not the total amount you'll pay over time, taking 10+ years to pay it off can be a good approach that leaves you with a longer runway.