Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsYoung Adults, Student Debt and Economic Well-Being
http://www.pewsocialtrends.org/2014/05/14/young-adults-student-debt-and-economic-well-being/Student debt burdens are weighing on the economic fortunes of younger Americans, as households headed by young adults owing student debt lag far behind their peers in terms of wealth accumulation, according to a new Pew Research Center analysis of government data. About four-in-ten U.S. households (37%) headed by an adult younger than 40 currently have some student debtthe highest share on record, with the median outstanding student debt load standing at about $13,ooo.
An analysis of the most recent Survey of Consumer Finances finds that households headed by a young, college-educated adult without any student debt obligations have about seven times the typical net worth ($64,700) of households headed by a young, college-educated adult with student debt ($8,700). And the wealth gap is also large for households headed by young adults without a bachelors degree: Those with no student debt have accumulated roughly nine times as much wealth as debtor households ($10,900 vs. $1,200). This is true despite the fact that debtors and non-debtors have nearly identical household incomes in each group.
While these stark differences in wealth accumulation are accounted for in part by outstanding student debt, thats only part of the story. Since the typical young student debtor household has about $13,000 in outstanding student loan obligations and the overall wealth gap is much larger, clearly other factors are also at work. Specifically, student debtor households are accumulating less wealth, in part, because they tend to owe relatively large amounts of other debt as well, from car loans to credit card debt. Among the young and college educated, the typical total indebtedness (including mortgage debt, vehicle debt and credit cards, as well as student debt) of student debtor households ($137,010) is almost twice the overall debt load of similar households with no student debt ($73,250). Among less-educated households, the total debt load of student debtors ($28,300) is more than ten times that of similar households not owing student debt ($2,500).
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
5 replies, 595 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (5)
ReplyReply to this post
5 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Young Adults, Student Debt and Economic Well-Being (Original Post)
xchrom
May 2014
OP
riderinthestorm
(23,272 posts)2. We're destroying the best snd brightest of our future
Horrifying
Sad K&R
teenagebambam
(1,592 posts)3. Young?
I'm pushing 50 and will never be out from under my student loan debt.
Proud Public Servant
(2,097 posts)4. The one commitment my wife and I made
was that our daughter would begin adult life without student loans; we stuck to that even after she chose to go to one of the most expensive schools in the country. We've been paying hers off for the last couple of years, and have a couple more years to go -- but it's not crimping our style that much, and it's allowing her to start her career unencumbered. Our big fear, though, is that she'll still end up under a crushing burden of debt because a college degree doesn't cut it anymore, and she'll need a masters to stay competitive in her field. Something's got to give here.
riderinthestorm
(23,272 posts)5. pm kick. nt