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RE: Debt On Track To Destroy The American Middle Class
The next crisis will likely be over student debt, so many millenials are entering adult life and the work force with up to $150,000 student loan debt. No job will ever pay enough to cover this debt and allow them to live comfortably in a home they own. This means less tax revenue, less resilience in the event of large financial crises (no savings or equity to fall back on, huge dependence on keeping whatever job they can find), and growing disparity between the wealthy and working poor.
It is not sustainable, and it affects too many Americans for this not to devastate the economy when that bubble finally bursts.
There are 9 ways to qualify so that so do not have to pay your student loans or pay a very reduced rate. These plans are for the gov't loans - not the private ones.
Unless you are making excellent money. You will qualify for one of the plans. The first notification you get about your loans after graduating tells you about what those plans are and how to apply for them. I have recommended looking into this to many people in a couple of my mom's groups on fb. Anyone who has answered me has been thrilled to qualify in days if not hours.
If you get on one of those plans - each month you are on it is a credit toward you paying in full even if you don't . After 20 years the whole this is "paid" on several of the plans.
No one should be struggling to pay student loans when this is such a slam dunk. All you have to do is jump through the hoops. It is a huge help to the debtor while also a huge problem for the broader economy. The larger economy is a house of cards farce anyway, so why should an individual psychology major care about that?
It’s a “slam dunk” if you’re willing to hold your loans for 25 years waiting for them to disappear. Keeping your income steady and not earning any bonuses (like if a small coin you invested in moons) for 25 years is a very restrictive way to pay off loans.
Earning the money and paying them back is hard too.
Those little notes are shackles.
That’s the next “show” crisis. The one we will see.
The next real crisis is in education. It’s too expensive. It’s dangerous. And it’s outdated.
As more people pull out of the traditional education systems, those with no resources (the poor, again, surprise) will now be stuck in schools that get exponentially worse.
A decade of that and you’ll start to see poverty beyond control.