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People in their 20's are carrying average debt loads of $45K, according to a PNC survey, with...

People in their 20's are carrying average debt loads of $45K, according to a PNC survey, with education loans topping the list. Servicing much of this debt is about to get harder as the interest charged on government-subsidized Stafford loans is scheduled to jump on July 1 to 6.8% from 3.4%.
Comments (6)
  • Ron Myers
    , contributor
    Comments (256) | Send Message
     
    TBTFs: Can borrow for nothing and park the money at the fed for risk-free infinite ROE profit. Any discussion of raising rates is instantly countered by "tightening would kill the economy".
    Main Street: Rates which are already too high for debt which can never be discharged are doubled.
    20 Mar 2012, 08:06 AM Reply Like
  • tunaman4u2
    , contributor
    Comments (3404) | Send Message
     
    And they are going to pay their mortgage, oil bill, food, gas, loans, insurance AND save for 100k per year college for their kids.

     

    Lets face it, this all ends in 30 years when the next generation has NOTHING towards college. 100k per year per kid of after tax saved money? After inflation is way hotter than wage growth?

     

    Do the math
    20 Mar 2012, 08:07 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    Don't worry,

     

    Both the fed and the Gov't have programs to keep housing prices propped up.

     

    American dream & hosehold formation not for thr under 25 crowd. Bank's balance sheet collateral more important.

     

    Like the Teacher's Unions say.

     

    "It's for the Children"
    20 Mar 2012, 08:31 AM Reply Like
  • Zigg
    , contributor
    Comments (55) | Send Message
     
    I would think a lot of people will get the loans deferred by going back to school (and adding more debt).
    20 Mar 2012, 08:17 AM Reply Like
  • apberusdisvet
    , contributor
    Comments (2990) | Send Message
     
    More than anything else, this reality certainly makes any sort of housing recovery, at least for a decade or more, highly unlikely. The 19-34 age cohort, historically, is the first time buyer. Hard to scrape up a legitimate down payment when your debt to income may exceed 100%.
    20 Mar 2012, 08:27 AM Reply Like
  • Trader Monk
    , contributor
    Comments (130) | Send Message
     
    Just looked into my crystal ball..and I see the current administration discussing more relief programs designed to buy votes..
    20 Mar 2012, 08:43 AM Reply Like
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