Student Loan Debt

Millennials Expect To Retire At 56 Despite Negative Net Worth

June 15, 2018 By Sheep Media

ZeroHedge| Not only are millennials the most populous generation in the American workforce, but the tremendous amount of credit card and student loan debt they carry has made them the most indebted generation in modern history – which is forcing them to put off other major life decisions.

But despite the fact that a surprising number of millennials are fat and broke, many still have an optimistic view on when they expect to retire. Though their generation mostly lacks the generous pensions offered to Baby Boomers and some Gen Xers, A TD Ameritrade survey found that millennials who use the service expect to retire at the surprisingly young age of 56. That’s six years below the current minimum age for receiving social security.

What’s even more surprising, of the 1,500 millennials surveyed for the study, 53% expect to become millionaires at some point in their lives. However, that percentage is unevenly divided between men and women: Of those surveyed who expect to become millionaires, 70% are men, compared with 38% of women.

Roughly 80% of millennials struggle with at least one type of debt. Meanwhile, according to the study, millennials are prioritizing saving unlike previous generations – or maybe it just seems that way.

According to the survey, roughly 70% of respondents to the survey described themselves as “savers.” Though that doesn’t quite jive with the official data, which show that the personal savings rate in the US is near all-time lows.

A small percentage of savers say they never expect to pay back their loans (and recently we pointed out that about 100 or so Americans have more than $1 million in student loans). All of this is happening at a time when interest rates are rising, inflation has been showing signs of moving higher, gas prices are climbing and a shortage of homes has forced real-estate values to levels last seen before the housing crisis. Meanwhile, their net worth will likely remain negative for a while.

Back in March, we pointed out that debt-laden millennials have been set back an average of $140,000 compared with their parents – a problem that has been compounded not just by student loans but by the costs of rent, food and other bills like car loans, which have also seen rapid growth.

Any millennial who honestly expects to retire at 56 should be aware: If you truly want to retire young, you need to start saving in your 20s. Because with “the power of compounding,” as TDAmeritrade strategist JJ Kinahan explained it, “even those who start early can end up with more in the end.”

Of course, by ‘saving’, Kinahan appears to mean ‘gambling in the stock market’, but tomato-potato.

For The First Time Ever, Millennials With Student Debt Have Negative Net Wealth

April 21, 2018 By Sheep Media

On Thursday, Young Invincibles released a troubling update to their report, “The Financial Health of Young America: Measuring Generational Declines Between Baby Boomers & Millennials.” This report includes a cross-generational study of the financial well-being of Millennials today versus Baby Boomers when they were in their adolescence. The update covers the economic challenges facing millennials age 25 to 34 between 2013 and 2016.

Despite the fact that this is the second most extended economic expansion/central bank induced channel of financial capital into speculation and financialization, the update reveals how the millennial generation has transformed into the lost generation, as their financial security has eroded late in the business cycle.

For the first time, young adults age 25 to 34 with college degrees and student loans have a median net wealth of negative $1,900, said the advocacy group.

The report states that this lost generation had a positive net wealth of $9,000 in 2013, but since, the accumulation of debt has turned America’s future leaders into the walking dead.

The report update shows new, disturbing trends for Millennials, including:

“For the first time, young adults who graduated college with student debt have negative net wealth. Today’s young adults with student debt have a median net wealth of -$1,900. That’s down from a median net wealth of $9,000 in 2013.”

“Homeownership among young people continues to trend downward. A primary means for families to build and transfer wealth, homeownership among young people dipped by 3 percent. This trend is entirely driven by college graduates with student debt, as the rate of homeownership for young people with degrees but no debt, as well as those with no degree, remained stable.”

“This financial decline has been especially devastating for young African Americans, regardless of student debt. Between 2013 and 2016, homeownership among all young African Americans declined 6 percent, median net wealth has dropped nearly 19 percent, and the retirement saving rate also declined.”

Chart 1 – Median Net Wealth of 25-34 Year-Olds by Degree Status

” When subtracting all of their debts from all of their assets, today’s young adults with college degrees and student debt are left with a median net wealth of -$1,900. This is a decline of approximately $9,000 from 2013, a continuation of the trends revealed in the original report, though even more disturbing given the recent economic recovery. Moreover, negative net wealth serves as a powerful symbol of student debt weighing down on young adults’ ability to achieve financial stability. After investing tens of thousands of dollars and years into their education, these young people have not yet broken even. While we know that on the whole a college education is still the best pathway to long term financial security, student debt is blunting some of the benefit that a college degree should have on wealth accumulation.”

Chart 2 – Percent of 25-34 Year-Olds who are Homeowners by Year

“Research shows that home ownership continues to be the primary means for families to build and transfer wealth. Home ownership declined for young adults from 43 percent in 2013 to 40 percent in 2016. This trend is entirely driven by college graduates with student debt, as the rate of homeownership for the those with degrees but no debt, as well as those with no degree, remained stable. This does not mean the debt is causing the decline in homeownership, but the correlation is persuasive.”

Chart 3 – Percent of 25-34 Year-Olds who are Homeowners by Degree Status

“This latest update adds an important layer to our existing analysis on the financial decline of young people compared to their parents’ generation,” said Tom Allison, author of the report update and Deputy Policy & Research Director for Young Invincibles.

“This newly-available data shows that despite overall economic growth between 2013 and 2016, which brought lower unemployment and growing GDP, this generation of young people is still being left behind. Student debt is a unique and growing burden on young people’s ability to achieve long-term financial stability. As the most diverse generation in our nation’s history, today’s young people need policies that also address the widening wealth gap and advance equity and mobility.”

The cross-generation understanding will be important as millennials takeover over a substantial percentage of the workforce in the next 8 to 10 years. With the knowledge presented above from Young Invincibles, America’s future leaders have insurmountable debt that honestly reflects the current financial status of this country: bankrupt. Trump wants to “make America great again,” but we should accept the fact that empire is in decline…

Source: Zero Hedge

The REAL Reason So Many Millennials Still Live With Their Parents & SOLUTIONS For A Brighter Future!!!

August 1, 2017 By Sheep Media

Recently, a U.S. Census report confirmed something many millennias like me know all too well: As of 2015, one-third of 18- to 34-year-olds still lived at home—beating out all other living arrangements, including cohabitating with a partner or living alone, for the first time.

Older generations like to attribute this to laziness or entitlement, saying we lack ambition or are coddled by our parents—but that’s a clouded argument. There are some lazy kids in every generation, but a third of us? Sorry, but no.

As a millennial who’s in this category, I’m setting the record straight on the real reasons we’re still living at home.

Market Watch reports:

We’re shouldering serious student loans.

Borrowers who graduated in 2016 owed more than $37,000 in student loans—and that’s just the average. I graduated with more than $60,000 in student debt, which translated into monthly payments of $611. Plus, because more than half my loans were taken out before or during the recession (before interest rates came down), I’m paying interest rates as high as 8%—on federal loans. That’s a huge burden when you’re just starting out.

It’s been challenging to find good jobs.

In 2014, 51% of new college grads were working jobs that don’t require a degree, according to a CareerBuilder survey. (Think: the stereotypical English-major-as-barista.) This is the problem that I, along with my peers, have been facing: We graduated into one of the worst job markets in recent history.

The lack of adequate jobs translates into underemployment, which leads to two problems: Lost wages and gaps in employment history, both of which impact earning potential for the rest of our careers. In fact, according to the Census report, 41% of men between the ages of 25 and 34 today earn less than $30,000, compared with 25% in 1975.

The rent is too high

A one-bedroom apartment rents for about $1,234, according to a GOBankingRates study—a high cost when you’re struggling to find work and pay down debt. (And this doesn’t even include utilities.) If you’re earning $7.25 an hour, the federal minimum wage, you’d have to work 170 hours a month just to afford the average apartment. Add in a $300 student loan payment, and it jumps to 211 hours worked in one month—just to live on your own and pay one debt bill. (And that’s pretax.)

Our parents are struggling, too

The recession may have hit us hard, but it didn’t leave our parents unscathed: Millions lost their jobs and had a hard time finding work, too. Many of them (like my father) had to dip into their retirement savings at the worst possible moment—when the market was at its lowest—just to survive until they found work again, and now they need to make do with lower wages.

Despite living at home, nearly 20% of us are currently helping out our parents financially, spending more than $18,000 a year on average to do so. I haven’t spent nearly that much, but I have covered some bills my parents couldn’t—from credit cards to prescriptions and car repairs. I don’t say this begrudgingly, because I love my parents, but their financial decisions do have consequences for my own personal plans and goals.

To all parents out there whose kids are juniors in high school this fall; please seriously talk with your kids about jobs that pay well without a college education.

Remember, this generation is shouldering serious student loans.

The debt trap in which so many millennials live, thanks to that college education, and the debt burden it brings, is avoidable, but they are going to have to think their way around believing that a college education is “the only way” to get a decent job.

High paying jobs you can get without a college degree

Best jobs you can get without a college degree

17 jobs that don’t require a college degree and pay over $70,000 a year

Better yet, let your child figure out what they might like to do for a living and you, the parent, go find someone in that type of business and see if you can arrange some type of mentorship/apprenticeship program. Many small business would take on the extra help and have no issues with training someone who they believed was truly interested in learning that trade/service. That company would probably hire on your child after the program ends if they were truly an asset to that company. In addition, your child will be learning “hands-on” entrepreneurial skills that college will NEVER be able to teach them. Your child then walks away with zero debt and a whole new future full of opportunity.

THIS IS HOW YOU CREATE A MAJOR PARADIGM SHIFT!!!

The old model of a college degree being the only way to get higher paying jobs doesn’t make sense in this part of the 21st century. And there are respected on-line colleges which allow you to take college at your own pace, and can either enhance your chances of promotion at work, or give you the classical education you have wanted, whether it enhances your upward financial mobility or not.

But before kids think about college, and until maybe there is universal, free higher education in this country (a number of countries in Europe have been doing this for decades), they need to ask themselves; is this the only way to a good-paying career?!? And if they check out their options, they will see that this is absolutely not the case.

As Paperwork Goes Missing, Private Student Loan Debts May Be Wiped Away

July 23, 2017 By Sheep Media

A City College of New York graduate last year. At least $5 billion in private student loans are at the heart of a legal dispute. Credit Spencer Platt/Getty Images

Tens of thousands of people who took out private loans to pay for college but have not been able to keep up payments may get their debts wiped away because critical paperwork is missing.

The troubled loans, which total at least $5 billion, are at the center of a protracted legal dispute between the student borrowers and a group of creditors who have aggressively pursued them in court after they fell behind on payments.

Judges have already dismissed dozens of lawsuits against former students, essentially wiping out their debt, because documents proving who owns the loans are missing. A review of court records by The New York Times shows that many other collection cases are deeply flawed, with incomplete ownership records and mass-produced documentation.

Some of the problems playing out now in the $108 billion private student loan market are reminiscent of those that arose from the subprime mortgage crisis a decade ago, when billions of dollars in subprime mortgage loans were ruled uncollectible by courts because of missing or fake documentation. And like those troubled mortgages, private student loans — which come with higher interest rates and fewer consumer protections than federal loans — are often targeted at the most vulnerable borrowers, like those attending for-profit schools.

At the center of the storm is one of the nation’s largest owners of private student loans, the National Collegiate Student Loan Trusts. It is struggling to prove in court that it has the legal paperwork showing ownership of its loans, which were originally made by banks and then sold to investors. National Collegiate’s lawyers warned in a recent legal filing, “As news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises.”

National Collegiate is an umbrella name for 15 trusts that hold 800,000 private student loans, totaling $12 billion. More than $5 billion of that debt is in default, according to court filings. The trusts aggressively pursue borrowers who fall behind on their bills. Across the country, they have brought at least four new collection cases each day, on average — more than 800 so far this year — and tens of thousands of lawsuits in the past five years.

–>READ MORE HERE<–

The Higher Education Bubble and Solutions to Save The Middle Class

January 4, 2014 By Sheep Media

by: Julie Telgenhoff

There is currently One Trillion Dollars in U.S. Student Loan Debt (more than credit card and auto loan debt combined). America is facing a higher education bubble. Like the housing bubble, it is the product of cheap credit coupled with popular expectations of ever-increasing returns on investment, and as with housing prices, the cheap credit has caused college tuitions to vastly outpace inflation and family incomes.

Now this bubble is about to burst. Stop the debt cycle ….they want you indebted to them and FOREVER a Debt Slave. One would be better off learning a trade skill to where they are either able to produce something and/or provide some kind of necessary service.

Please also watch The College Conspiracy HERE.

ALL this student loan debt is GOVERNMENT FINANCED (so in reality, it’s all our debt). It is easily accessible to anyone vs using banks to where banks have to compete with one another for that student loan business.

Watch this video on the Higher Education Bubble. Then read on about ‘SOLUTIONS’ to the nearing crisis. Thank you.

SOLUTIONS ….

We need to stop getting jobs and start creating jobs ourselves. If we want the best education on how to do something, we need to find the person or company that does it best and then freely learn under them (cheaper than that 4 yr degree debt that we’re not earning any money while attending). This is a win win for both vs getting into debt with student loans for that precious 4 year degree.

I personally learned nothing from obtaining a college degree. Albeit, that 4 year degree got me in the door for the interviews back in the 80s and 90s, however, everything I actually learned was from the company I worked for and the hard work I put into wanting to learn.

The middle class is being destroyed on purpose because it is the back bone of America and small business, or jobs created ourselves, WERE, at one time, the core of our middle class economy. This is a designed collapse happening NOW. There won’t be some momentous event.

We have to start creating and then supporting each other with jobs created ourselves vs allowing this LARGE corporate takeover (Fascism). Yes, America is being destroyed from within with the assistance of the state-run Mainstream Media (MSM) Scripted News lying to the public about the dire situation our country is in.

It’s up to us; no one is going to save us. No Democrat, Republican, Tea Party, Libertarian, etc is the solution. In fact, let’s just say that most politicians in that illegal and high-jacked US government are only interested in one thing …saving themselves. The one world tyrannical, police state governance (NWO) is almost complete. If we do not all step it up, and do it soon, we can pretty much kiss our freedom and economic health good-bye!

If you have any other suggestions, your feedback is appreciated so please feel free to comment below. Thanks.

About the author: Julie Telgenhoff is the owner of Sheep Media and A Sheep No More ™ on Facebook, Twitter and asheepnomore.net.

Because of the increasing censorship and ‘on purpose’ ad demonization, now more than ever, I really need your help in order to keep this small, independent media site going and sharing information with you 365 days/year. If you like my work and you can assist me, my Patreon account allows for a small monthly pledge (here) or you can support this work with a small donation via Paypal (here). THANK YOU for your concern. – Julie Telgenhoff, Creator of A Sheep No More