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The development of adult life is stunted. It takes longer to afford to rent an apartment on your own, buy a house, buy a car, get married, start a family, start

The development of adult life is stunted. It takes longer to afford to rent an apartment on your own, buy a house, buy a car, get married, start a family, start a business, etc. If you're college educated you probably have a broad support network. So instead of being homeless, you move back in with your parents. So instead of losing your home, you may never get it in the first place. The consequences of defaulting on a student loan are also quite severe. https://studentaid.ed.gov/repay-loans/default#what-are-the https://studentaid.ed.gov/repay-loans/default#what-are-the

speeder 13y ago
You are correct. I am 25, and since my first serious job (I was 23) I've been in the government category for the most rich as possible in earning amount (the category is everyone in the top 5% of income... granted, there is still a GREAAAAT gap between the top and low of that... I reached the top 5% with 20k USD/year) I don't own a vehicle (not even a bicycle), much less a living place. I think if I sum all my possessions (literally, including my clothes, glasses, phone... without depreciation) and my debts, I am still negative. According to my calculations, I will be able to buy my first apartment when I am about 35 years old, unless I move back with my parents and stop paying rent. Also I won't bother in buying a vehicle, unless it become really, really necessary (and then, I will buy a chinese QQ or J2) When I think about that, it is really, really, really depressing and ridiculous.
greenyoda 13y ago
And to connect the next couple of dots: - All these young people who can't afford homes, cars or kids will cause the economy to not grow as fast as it otherwise would. - And if the economy is slow, fewer jobs will be created, keeping these young people poor even longer. Of course, not everyone has parents that they can move in with, and those who don't have that safety net will suffer the most.
Zigurd 13y ago
The draconian terms are going to push some people to emigrate if they are forced to default. There are a lot of Americans teaching English in China who are running from problems like these.

speeder 13y ago

You are correct. I am 25, and since my first serious job (I was 23) I've been in the government category for the most rich as possible in earning amount (the category is everyone in the top 5% of income... granted, there is still a GREAAAAT gap between the top and low of that... I reached the top 5% with 20k USD/year) I don't own a vehicle (not even a bicycle), much less a living place. I think if I sum all my possessions (literally, including my clothes, glasses, phone... without depreciation) and my debts, I am still negative. According to my calculations, I will be able to buy my first apartment when I am about 35 years old, unless I move back with my parents and stop paying rent. Also I won't bother in buying a vehicle, unless it become really, really necessary (and then, I will buy a chinese QQ or J2) When I think about that, it is really, really, really depressing and ridiculous.

greenyoda 13y ago

And to connect the next couple of dots: - All these young people who can't afford homes, cars or kids will cause the economy to not grow as fast as it otherwise would. - And if the economy is slow, fewer jobs will be created, keeping these young people poor even longer. Of course, not everyone has parents that they can move in with, and those who don't have that safety net will suffer the most.

Zigurd 13y ago

The draconian terms are going to push some people to emigrate if they are forced to default. There are a lot of Americans teaching English in China who are running from problems like these.