Finally, we take note of this interesting and concerning article in Forbes about the massive debt the millennial generation faces today. The article takes on an aggressive stance at the outset. “Millennials are the first generation to be handcuffed by insane levels of student debt. What we have done to this generation is shameful. The fact that there is now over $1.5 trillion in student loans, two-thirds of which is sitting on the back of women is wrong. This never should have happened,” states the author.
We take note of this as one of the issues that will be foundational to many of the democratic candidates running as several have already focused on student loan debt as a key villain affecting young people.
As this chart from collegeboard.org shows, the annual amount of student loan debt is significant especially when you multiple this by four for an undergraduate degree, and maybe add in a couple more years of graduate school, the net debt is significant.
According to debt.org, “Average Monthly Payment for Student Loans. The average student loan debt for 2016 college graduates who borrowed to get through school was $37,172. If a 2016 graduate took the standard repayment plan for the $37,172 borrowed – 10 years, at 4.29% interest rate – they would be paying $382 a month for the next decade.”
For Mortgage Media we see this a one of the impediments causing the delay in homeownership by millennials and one that may have longer lasting implications to the nature of household formation.