6 ms·
They definitely mention it! "Those who do not have parental assistance in their 30s, however, continue to be at a disadvantage. “They are grappling with paying
by lanewinfield 8y ago
They definitely mention it!
"Those who do not have parental assistance in their 30s, however, continue to be at a disadvantage. “They are grappling with paying off student-loan debt, their savings might not be as strong because of that, and many are taking care of other family members,” said Iimay Ho, 32, the executive director at Resource Generation, an organization that works with people ages 18 to 35 with wealth or class privilege to engage on issues of inequality."
...
"For those without parental cash at the ready, there’s often some kind of debt hangover that holds them back in significant ways. Roger Quesada, 34, calls his $65,000 of student-loan debt to Sallie Mae, which incurs $400 a month in interest payments alone, “a jail sentence.” A lapse in his payments ruined his credit, he said, and has hampered his financial and career aspirations."
And I feel for it, too. Compounding debt instead of compounding interest. Reminds me of a very relevant Onion headline:
"Lazy Poor Person Has Never Earned Passive Income From Stock Dividends A Day In His Life"
https://local.theonion.com/lazy-poor-person-has-never-earned-passive-income-from-s-1832537497 https://local.theonion.com/lazy-poor-person-has-never-earned...
- hopler 8y ago> savings might not be as strong because of that, Is incredibly tone deaf way to describe people living paycheck to paycheck.
- yathern 8y agoPaying off loans doesn't also mean you are also living paycheck-to-paycheck. Even if so, this article is well researched and has sparked good discussion - accusing the author of being tone deaf, with no other contribution or criticism is not very nice.
- pdabbadabba 8y agoThat seems like a non sequiter. Plenty of people are still paying off student loan debt but hardly living paycheck to paycheck, myself included. The article, by contrast, has it exactly right. I, for example, have a savings "maximum" that I've identified (for savings other than the ones with significant tax advantages, like IRA contributions), such that whenever I exceed it, that surplus goes towards more quickly paying off student loan debt. So, indeed, while I'm not living paycheck to paycheck, my savings also are not as strong as they would otherwise be.
- debttmp789 8y agoThis is pretty spot-on for me at the moment. Low-mid 30's and I sort of have a "choice" to borrow from my parents to get me by (which would actually be saddling them with more debt - however they are FAR better equipped to deal with it). I'm taking a good hard look at declaring bankruptcy this week as an attempt to break out. It would be less heartbreaking than continuing the feelings of fealty.
- ttul 8y agoI wonder if going bankrupt now (prior to a recession) is a good strategy because it means you will emerge from it sooner than the bulge of others who become bankrupt after the recession. Serious point...
- cheeko1234 8y agoWhat makes you so sure a recession is coming?
- ttul 8y agoRecessions always come. Timing is of course impossible to predict.
- cheeko1234 8y agoObviously. Your comment seemed to imply a recession incoming sooner than later and was wondering if you had a source.
- otoburb 8y agoThat is a viable option for many types of debt, but some forms of student debt cannot be discharged under bankrtupcty[1]. There is no easy answer here, because the immediate first-order reaction to questions about blanket student loan forgiveness is the inevitable moral hazard angle. [1] https://qz.com/1367412/1-5-trillion-of-us-student-loan-debt-has-transformed-the-american-dream/ https://qz.com/1367412/1-5-trillion-of-us-student-loan-debt-...
- TheSpiceIsLife 8y ago> Compounding debt instead of compounding interest. I’ve not seen this distinction made before. Can you elaborate?
- kevinventullo 8y agoI think they just meant debts you owe compounding versus debts owed to you compounding (as in savings accounts or treasuries).
- TheSpiceIsLife 8y agoOh, right, I see. Thanks :)
- lanewinfield 8y agoI'm terrible at checking my threads, but yeah! That's what I meant :)
- weberc2 8y agoI wish more conversations around student loan debt discussed the outcome difference by major. The income gulf between an engineer and a lit major is massive. The conversation focuses on how bad the economy was when we graduated, but I suspect outcomes would be wildly different if people majored in STEM or business and instead minored in feminist dance theory or French poetry or whatever their passion may have been.
- piva00 8y agoAnd here is the catch, some of these low-paying studies are also important for society. Culture has a place and a PhD in Contemporary Classical music has its worth in society. Education is one of the best returns of investment of taxes a society can make to itself, I don't understand how people want to make this into a free market, it doesn't seem to work.