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Barron's: We Knew Millennials Were Drowning in Debt. Now We Have Ugly Details (pay wall)

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Interestingly, the big problem is education debt. Credit card debt comes in much lower. A few of the ugly details:

 

The average loan balance for those graduating with student debt is $36,888, or a $371 monthly payment over 10 years, according to Age Wave calculations.

 

The average credit card balance is $3,700 among those with card debt, and more than half are struggling to pay it off, according to the Survey of Consumer Finances.

 

If over half are struggling to pay off the CCs, what about the education loans? In forbearance? Who knows.

 

No paywall:

https://www.heraldmailmedia.com/news/usa_today/millennials-still-lean-on-parents-for-money-but-want-financial/article_4b36cd39-c9f1-5377-9fe7-e69835a80edd.html

 

https://www.usatoday.com/story/money/2019/04/18/millennial-money-why-young-adults-still-need-support-parents/3500346002/

 

 

 

Edited by cashnocredit

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$36K is not a huge sum.  The media tries to make people believe these kids are all coming out with six-figure nuts to be paid off.  Instead, this suggests they are coming out with less than a car payment.   My lack of sympathy for them just dropped to the extent that one can drop from a complete lack of sympathy...

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On 4/18/2019 at 5:24 PM, centex said:

$36K is not a huge sum.  The media tries to make people believe these kids are all coming out with six-figure nuts to be paid off.  Instead, this suggests they are coming out with less than a car payment.   My lack of sympathy for them just dropped to the extent that one can drop from a complete lack of sympathy...

Centex, completely agree. When I finished college...back in 2008, I walked out with 16k worth of debt. Back when I was smart (before 2014), I had paid it off. It comes down to buckling down and getting rid of the debt, as quickly as possible. Working 2 jobs is how I did it....I would like to know what their excuses are now and days.

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I paid as I went (savings, employment income, scholarships) and graduated in four years with ~$2,000 left in savings.  

 

I spent all of that moving to Chicago and putting a deposit on my first place, which I shared with two roommates.  

 

My first bout with adult reality was failing to budget for utility bills.  😐

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1 hour ago, AlabamaSteve said:

.I would like to know what their excuses are now and days.

It starts with the not wanting to work thing LOL!

 

After all, look at how the new presumptions seem to be that kids are going to live on mommy and daddy's fiscal teat into the late 20's.  They don't WANT to enter the real world.  It gets in the way of being some sort of a social media influencer or similar silly crap.

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I had 3 brothers and a sister and we all left home as soon as we were able which was sometime between 18 and 19 y/o. But that was in the 60's and 70's.  Back then the idea you would live or be supported by your parents was pretty weird. Empty nest syndrome was often talked about but helicopter parenting was unknown.

 

Funny how things change.

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15 hours ago, cashnocredit said:

I had 3 brothers and a sister and we all left home as soon as we were able which was sometime between 18 and 19 y/o. But that was in the 60's and 70's.  Back then the idea you would live or be supported by your parents was pretty weird. Empty nest syndrome was often talked about but helicopter parenting was unknown.

 

Funny how things change.

You are absolutely correct on this. Young adults today are being molded into a coddled society, in which sadly they are not forced into any hard situations nor made to "figure it out". I am 33, and my 2 brothers and I were raised the same way. At 18 we all got a boot in the butt, and told to get a job and move out. My youngest brother and I figured out how to make it work...my older brother not so much. He had, and still has, an entitlement mentality, that sadly runs rapid in the world today. The world doesn't owe you a thing, get off your butt and earn it. Ok, end of rant :)

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My DW has to deal with the shenanigans of people from their teens to late 20's bringing mom and dad to the job interview. DW just goes through the motions of the interview and never hires them.

 

My sister is a nurse at a hospital. Never fails, at least a few times a week a parent comes running into the ER with their kid thinking level one trauma care is needed, when all their child did was fall off the bike and bloody their knees. Helicopter parenting at its finest.

 

My sister's coworkers think she is some sort of privileged, elitist scum because she came out of school with zero student loan debt. While her coworkers were trying to get every holiday off and whatnot, she was taking all the OT she could get. Bed pans were not beneath her, for the greater good of the goals she was trying to achieve. Sure she missed a few holiday get togethers along the way, but mom and dad was fully supportive in her plan.

 

Play dates? Are you kidding me! We simply went outside and played. There were kidnappers and molesters back in the day too. We were taught to kick, scream, bite, at all costs. I always knew to ask to see the candy first before getting in the car. Lol.

 

 

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19 minutes ago, TheVig said:

My DW has to deal with the shenanigans of people from their teens to late 20's bringing mom and dad to the job interview.

 

 

No.

 

No.

 

No.

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On 4/18/2019 at 3:41 PM, cashnocredit said:

The average loan balance for those graduating with student debt is $36,888, or a $371 monthly payment over 10 years, according to Age Wave calculations.

I would support a process where conferring a degree creates a recorded instrument (diploma), like the deed on a home.

 

Student loans would create liens against the degree until repaid, and if the borrower defaults on loan payments the degree would be suspended or "repossessed." 

 

A suspended/repossessed degree could not be used as the basis for employment, but could be redeemed for a fair settlement (money, legitimate long-term community service with measurable results, etc.).

 

Some states suspend professional and other state-issued licenses for nonpayment of taxes.  This works on the same principle.

 

Making degrees public records would also help employers verify an employee's background through a simple search of courthouse records in the county where the educational institution is located.

 

 

Edited by cv91915

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25 minutes ago, cv91915 said:

I would support a process where conferring a degree creates a recorded instrument (diploma), like the deed on a home.

 

Student loans would create liens against the degree until repaid, and if the borrower defaults on loan payments the degree would be suspended or "repossessed." 

 

A suspended/repossessed degree could not be used as the basis for employment, but could be redeemed for a fair settlement (money, legitimate long-term community service with measurable results, etc.).

 

Some states suspend professional and other state-issued licenses for nonpayment of taxes.  This works on the same principal.

 

Making degrees public records would also help employers verify an employee's background through a simple search of courthouse records in the county where the educational institution is located.

 

 

Sadly we both know this won't happen. People will stomp their feet and scream "That's an evasion of privacy" 

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9 hours ago, TheVig said:

My DW has to deal with the shenanigans of people from their teens to late 20's bringing mom and dad to the job interview.

O. M. G. 

Do they also bring their emotional support animals?

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16 hours ago, Occam said:

O. M. G. 

Do they also bring their emotional support animals?

Only the peacocks...

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On 4/25/2019 at 8:51 AM, AlabamaSteve said:

Sadly we both know this won't happen. People will stomp their feet and scream "That's an evasion of privacy" 

I would also be open to treating student loan defaults as grand theft.

 

 

Edited by cv91915

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How about a whole generation of insecure middle aged adults/single parents who are NOT READY for their kids to leave the nest because they themselves are dysfunctional, unable to make real friends or have a life outside of their kids.. so they turn their kid into their best friend. My ex is like that (our 28 y/o son still lives at home with dad because dad makes him feel guilty for wanting to leave); a co-worker of mine who is doing something similar to her soon to be 18 year HS graduate... "my best friend"..  making the kid feel guilty for "abandoning" them,

Yes it's real and it exists.

 

My son has a decent job, is good with money and has no debt, but his dad won't let him leave. Makes me sick.

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On 4/25/2019 at 7:11 AM, TheVig said:

My DW has to deal with the shenanigans of people from their teens to late 20's bringing mom and dad to the job interview.

 

 

Why???

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1 hour ago, nooneimportant said:

Why???

Probably the only way the parents could coax their spawn to go in for an interview.

 

Like someone's going to hire the "kid" who's clearly not progressed far in his adulting skills.

Edited by cashnocredit

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