Beware the Snakes in the $1.5T Student Loan Industry

Written by adminApril 30, 2019
Loans , Student Loan Consolidation

Nobody wants to admit they might be screwed.

In the last stagnated economy, the American Dream was preached to the masses: everyone was entitled to home ownership. We were encouraged to borrow the money because real estate was the greatest investment on the planet.

Amid efforts to stimulate ourselves out of the current stagnated economy, the American Dream was preached again: telling us that everyone was entitled to a college education. That in fact, we should borrow the money because a college education is the greatest investment on the planet.

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You Get an Education, and You Get an Education!

The similarities are startling. The Countrywide commercials have been replaced with University of Phoenix ads to sign up for classes. The subprime borrowers are replaced by for-profit and community college student borrowers. Sallie Mae became Freddie & Fannie, where investors assumed zero risk since the government promised repayment.

Think about it for a moment – people want to feel as if they are bettering themselves, making an investment towards their future. It is ingrained in these borrowers that education will payoff for them in the long run.

The average human is not a rational economic actor. Many of us make extremely incompetent decisions with free money. As Vinny Daniel in the Big Short put it, “How do you make poor people feel wealthy when wages are stagnated? Give them cheap loans.”

Student loan borrowers have been able to hide in delinquency and forbearance for the last few years, letting the debt balloon to a whopping $1.5 trillion. Even though that’s just a fraction of the mortgage market, it still carries a measure of brevity.

Most of these borrowers have accumulated a large amount of debt at a young age and have barely any prospects moving forward. it’s highly unlikely that these bonds will be repaid at maturity. In the end, it will be up to the taxpayer to come in and repay the debt.


How Did It Come To This?

Most people tend to look at online schools like the University of Phoenix and their owners Apollo Education as the main culprits. But they are not the head of the snake.

It’s actually a toxic mixture of the Department of Education and Sallie Mae’s collections arm Navient Corp. Navient themselves are massively over-leveraged with $130 billion of liabilities that are among the most misunderstood in the market.

The root of the problem begins with the Department of Education which started incentivizing the loan servicer so that they can recover more delinquent funds. However, it turns out that servicers can make 30 times the profit by allowing loans to go into default and then recovering them. This allowed servicers to originate federal loans without checking the credit-worthiness of the borrower.

Just to look at for-profit colleges, they only account for 12% of enrollment but students at those schools have accumulated $280 billion of debt. The fact is these schools are nothing more than degree mills that target vulnerable borrowers who lack any formal education.

The majority of Navient’s bottom line comes not from debt servicing from default collection. When a borrower goes into delinquency, Navient gets paid a percentage of every dollar that it collects instead of a small fixed-fee. This contributes to how good they are at collecting the debt from their 12 million customers. Cue the incessant calls at all times of day, and the endless manipulations from agents looking to enroll borrowers in programs.


The Bill Comes Due

The problem here is not Navient’s questionable business practices, it’s more the inaction on the part of the Department of Education. The regulatory landscape is changing, but the rate of growth of the student loan problem might outpace it. The question isn’t if Navient will pay a penalty, the question is when.

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Americans Are Struggling More than Ever to Deal with their Financial Stress

Written by adminApril 30, 2019
Life Style

Both financial professionals and psychologists agree: Americans are freaking out about their money. They’re stressed to the max! The financial stress is so bad, it’s causing a number of health problems. The two areas where people are frustrated the most is healthcare costs and the rising cost of living.

It would appear as if every day average costs for groceries, gas, and other necessities keeps growing. What you could buy 10 years ago for $20 isn’t what you can buy today. Everything is getting more expensive, but wages are stagnant. Because they’re financial stress is so high, it impacts other facets of American life.

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“Money is a very important component of establishing a secure life,” said Norman Anderson, CEO and executive vice president of the American Psychological Association. “When people are financially challenged, it makes sense that their stress level would go up.” A lot of it has to do with a lack of financial education.

How a Lack of Education Causes Financial Stress

A study conducted by the APA found three-fourths of all Americans worry about their finances. 22% experience extreme stress. A lot of that comes from a lack of financial education. They’re not entirely sure where they stand when it comes to their money. Are they doing well? Are they properly prepared? Will something major happen in the future?

Another study done by Prudential found that a quarter of Americans didn’t quite have a good understand of their money. They’re completely falling behind the rest of the world, but have no idea they’re doing so badly. They might make it week-to-week, but otherwise are failing. It’s causing them a lot of financial stress and anxiety.

“Our relationship with money can affect our physical health, stress levels and state of mind, family dynamics and even performance at work,” says Prudential COO Stephen Pelletier. Here’s a list of our main worries:

Rising healthcare: 59%

Unplanned financial emergency: 55%

Unplanned health emergency: 53%

Income: 48%

Level of savings: 48%

Debt: 42%

Retirement planning: 41%

Money Problems and Relationships

A lot of the financial stress can impact relationships harshly. In fact, money problems are the number one cause of divorce in the United States. 19% of couples say they argue monthly about finances. 41% say financial stress negatively hurts their relationships with their partner. 31% say they’re constantly worried about money.

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A lot of those problem are disagreements over how to spend money. Increasing debt is also a factor as more Americans are spending more and using their credit cards. Americans hold $13 trillion in debt through all facets. It’s going to be difficult to pay all of that debt back and when we can’t, it strains our lives.

Financial Stress and Personal Health

Northwestern University conducted a study that concluded that high debt is hazardous to your health. The study found financial stress was directly responsible for increasing blood pressure and poorer health overall in young adults. People aged 24-32 shouldn’t be feeling that much stress or have high blood pressure.

“We now live in a debt-fueled economy,” says Elizabeth Sweet, lead author of the study. “Since the 1980s American household debt has tripled. It’s important to understand the health consequences associated with debt. You wouldn’t necessarily expect to see associations between debt and physical health in people who are so young,” Sweet says. “We need to be aware of this association and understand it better.”

A lot of that stress is indeed current debts, but a lot of it pertains to the future as well. 49% of young Americans don’t think they’ll be able to reach their retirement goals in time. Over 1,000 adults were surveyed and only 5% were found to be prepared for retirement. That’s a shockingly low number of people.

Sadly, those wonderful golden years we were looking forward to appears more like iron. More older Americans are working longer than ever, way past retirement age, just to keep up. It’s a sad state of affairs for Americans who work so hard. Dealing with financial stress shouldn’t be a constant norm.

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The Fight for $15 and What It Means for You

Written by adminApril 30, 2019
Life Style

There’s a fight going on across America. You might have heard about it briefly on the morning news. Currently, fast food workers have been protesting their companies to raise the minimum wage to $15 per hour. They’re demanding higher pay to keep up with the growing cost of living. It’s an understandable position, but one that wouldn’t help in the long run.

Harri is a workplace management software company that wanted to see what impact a $15 minimum wage would have. It wouldn’t necessarily make things easier for those trying to earn more money. In fact, Harri surveyed 173 restaurants at over 4,000 locations across the United States. It found the information you’d pretty much expect.

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For restaurants, they’d have to start increasing the prices of their menu items. Not to mention, cut down on employee hours. Those working a full-time schedule would be cut down to part-time. It would even result in staff being let go. Many in the Fight for $15 don’t understand that this will happen across the board. 

The Fight for $15

As more people get behind the Fight for $15, so do states. Maryland and Illinois are two states that have passed laws phasing in a $15/hour minimum wage. On the federal level, Democrats have proposed the idea, but it’s a bill unlikely to pass. It threatens to stagnate the economy and halt any current growth we’re experiencing.

Except, that’s not what the advocates are saying. They’re saying it will stimulate the economy, putting more money in people’s pockets. Overall, the goal is to reduce income inequality. It would even reduce the number of people who need government assistance programs. But opponents of the Fight for $15 say it will have the opposite effect.

Small businesses would be hurt the most by this. Jobs would ultimately be eliminated. And if prices increase across the board, then it essentially wipes out any advancement these workers would be making. Essentially, their cost of living adjustment would increase their cost of living even more and put them back where they were. 

The Results So Far

Looking at the cities and states that have increased their minimum wage, it forced businesses to make changes. These changes ultimately hurt the business and their customers. 71% of businesses raised their prices. That affects you as an everyday consumer. All the stores you shop would increase their prices dramatically.

Nearly half of the restaurants changed their menu to provide less options which reduced some costs. 64% of them reduced employee hours. 43% say they were forced to cut jobs. Only 23% of businesses made no changes overall. Those businesses were most likely nationwide chains who only had to make those changes in a few select stores.

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Overall, we should expect to see the Fight for $15 continue to rage on this summer. You as the consumer should expect to see higher prices across the board.

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Bad Credit Card Debt on the Rise

Written by adminApril 29, 2019
Credit & Debt

Currently, people in the U.S. are using their credit cards more than ever. While that can be a good thing if used correctly, this is bad news. New red flags are jumping in the credit card industry. The off-charge rate is growing and it’s higher than it’s been in seven years. This means people aren’t paying off the credit they’re borrowing.

The off-charge rate is the debt that loan companies don’t believe they’ll ever get back. It sits on their credit report, unpaid, and often falls off. The amount of debt that is considered charge-off rate grew another 3.82%. This is the highest number since 2012 when the economy was really taking a hit. This is due to data pulled together by Bloomberg Intelligence.

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It’s not just the charge-off rate that’s growing. The number of loans considered 30-days past due also grew. This increase was seen across all seven of the largest credit card issuers in the U.S. That means the potential for the charge-off rate to grow is very high. There’s one major reason why this is happening.

The Great Recession and Credit Card Debt

A decade ago, we saw the economy collapse into what’s called The Great Recession. Good, reliable work became scarce. People were losing their homes in large number. In order to survive, credit cards became America’s saving grace. Just whip out the plastic and worry about it later! Yet, the economic crisis pushed on for many more years.

Only now is the economy starting to come back. So, what happened with the credit card debt we accumulated? Well, it stayed on our credit. We saw a degradation of our credit quality in ways we’ve never seen before. Considered ‘negative credit events’, people just held on. They declared bankruptcy. Their credit suffered, but they made it through.

Lessons Not Learned

We’re now entering a time when the economy is mostly recovered. Unemployment is down to historic lows. Wages are rising and the stock market is booming to record highs. So, why is the charge-off rate growing again? The answer is, we didn’t learn our lesson from The Great Recession. In fact, it taught us a bad lesson.

All the bad credit people accumulated during tough times is starting to fall off their credit reports. Usually a bad report will fall off in seven years. That means bankruptcies and other credit borrowed but not paid back has fallen off their reports. And, instead of doing things the right way, people are borrowing more than ever.

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Either they assumed they could afford the new credit or they know it will just fall off in seven years. It’s unknown what impact this will have on the future economy.

“Certainly, this has been one of the longest recoveries, so, in general, we have been contracting credit policy at the margin and tightening,” Discover CEO Roger Hochschild said in an interview. Hochschild said his company has been closing inactive accounts and slowing down the number and size of credit-line increases for both new and existing customers.

“If you think about lending products, there are always people who want to take your money,” Hochschild said. “You’re going for people who have many choices — they have existing cards, they could get any card they want. So, our job is to make sure those are the ones we attract to Discover.”

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Avengers: Endgame Shatters Box Office Records

Written by adminApril 29, 2019
Entertainment

Move over “Titanic” and “Avatar”, there’s a new king to crown. This past weekend, the long-anticipated Avengers: Endgame was released. It was expected to do well, but it did far better than anyone anticipated. It will go into the record books as the highest grossing opening weekend on record.

In fact, Avengers: Endgame broke multiple records. The second record was being the first movie to ever break the $1 billion mark for a debut. That’s an incredible amount of money! It nearly doubled Avengers: Infinity War opening weekend of $640 million. So, after rolling out internationally, Endgame only took 5 days to reach $1 billion.

Domestically, Avengers: Endgame broke records as well. It made well over $350 million over the weekend. That blows away every other domestic records, including Infinity War. Yet, it was China who pushed Endgame into domination by grossing over $330 million. This was the largest global record since “The Fate of the Furious.”

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“We’re watching a monumental moment in the history of cinema unfold — one that the entire world is experiencing together,” said Shawn Robbins, chief analyst at Boxoffice.com.

Robbins added that the film is the “pay off Disney and Marvel have been promising” over its last decade of blockbuster films.

Marvel Studios and It’s Avengers: Endgame Success

Still, over the past decade, Marvel Studios has made over $20 billion. With Avengers: Endgame raking in a billion over the weekend, that number is sure to go up. Marvel has built its own empire over 22 films. Therefore, as we come to an end to Phase 4 of their movie cycle, we now wonder what’s in store for Marvel.

“Though ‘Endgame’ is far from an end for the Marvel Cinematic Universe, these first 22 films constitute a sprawling achievement, and this weekend’s monumental success is a testament to the world they’ve envisioned,” Alan Horn, Walt Disney Studios’ chairman, said in a statement.

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Paul Dergarabedian, senior analyst at Comscore (SCOR), said that “Avengers: Endgame” signals a “momentous end of an era” but now opens the door for “a new and exciting chapter for the future of the Marvel brand. This will extend to the small screen as well with Disney + on the horizon,” Dergarabedian said. “We will likely see a lot of synergy between the big and small screen.”

Marvel and Disney aren’t expected to roll out plans for the next phase until this summer. They’re waiting for the release of the latest Spiderman man. Still, what a run Marvel has had, leaving DC in its wake and desperate to catch up. Sadly, it doesn’t look like it will.

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McDonalds is Hiring the Elderly to Desperately Fill 250,000 Vacancies

Written by adminApril 26, 2019
Life Style

What happens to the world’s largest food chain when the economy is doing well? Suddenly, they simply don’t have enough workers. After the Great Recession, everyone was begging for a job. But now, people have left fast food work for something that pays a bit more. In order to fill the over 250,000 vacancies, McDonalds is turning towards an unlikely source.

McDonalds just announced a way to make up for their worker shortage. They’ve decided to partner up with AARP to bring in older Americans who might be looking for work. These types of jobs include everything from managers to cashiers. AARP has a job board and will be posting these available jobs on their website.

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AARP and McDonalds have also launched an initiative to bring in lower-income elderly folks and get them some work. The website will directly allow the interested parties apply for the position they want. It’s a good way to fill positions and give the struggling elderly a way to stay active and working as needed.

McDonalds and the Booming Economy

Currently, the national unemployment rate sits at 3.8%. That means there’s fewer people looking for work than in the past few decades. A larger part of that unemployed segment are elderly Americans. We continue to live longer than we ever have before. In fact, over the past decade, the number of people who are over 65 has grown tremendously.

By 2026, it’s estimated that 24.8% of the workforce will be people over the age of 55. Back in 2006, it was 16%. There are a lot of reasons why this is happening. Living longer is just one of them. Other challenges face older Americans that will keep them seeking work past retirement age.

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“People all over the country are facing challenges that are driving them back into the workforce and we need to connect them with employers that provide respect, dignity and opportunities for advancement and connection,” says Ron Painter, president of the National Association of Workforce Boards, in a press release. “It’s encouraging to see McDonald’s stepping up to the challenge.”

While a minimum wage job probably won’t solve these problems, it helps. It even has the added benefit of keeping older Americans active. That’s important for them to remain healthy in their golden years.

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If You Have Debt, You Should Probably Avoid Going on Vacation

Written by adminApril 26, 2019
Credit & Debt

America is a country that runs on debt. In fact, most of us are in some type of debt or another. 80.9% of baby boomers are in debt. 79.9% of Gen Xers are in debt. 81.5% of millennials are in debt. That’s a large number of people! While most of them either have a mortgage or student loans, there’s a lot of different types. From credit cards to medical debt, we’re struggling to keep our heads above water.

When people find themselves in debt, it seems they do whatever they can to make the problem worse. They want to maintain their lifestyle, so they abuse their credit cards. They can’t maintain the status quo by saving, can they? And they know that if things get too bad, they can just declare bankruptcy.

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But it’s time to admit there’s a problem. You can’t sustain a lifestyle on debt. Living above your means is not the path that leads to financial freedom. Worse yet, you could be leaving a pile of debt for your children to deal with. If you find yourself with this problem, the time is right now to take the bull by the horns.

Should People in Debt Go on Vacation?

We’re not here to tell you what to do. Rather, we want to encourage you to look at what you’re doing with your finances. If you’re in debt, you may not see it, but there are flashing DANGER warning signs all around you. No one is impressed if you saved up for your vacation this year. It’s not impressive to anyone that you’re taking your kids to Disney.

Why? Because if you’re in debt and going on vacation, you’re being financially irresponsible. Is taking the kids to Disney going to matter when you haven’t even started saving up for college? How much money do you have put away in a rainy-day fund for an emergency? Can you afford health insurance and retirement payments?

If the answer is no, you’re putting yourself and your family in danger. Taking that vacation is irresponsible and unimpressive. You don’t have the important things figured out. But don’t worry! There are a lot of other Americans who decide not to take their vacation. Instead, they understand the value of putting their money towards something more important.

Americans Forgoing their Vacation

Bankrate.com released a new poll recently that found millions of Americans won’t be going on a summer vacation this year. They cite their debt as a reason why. 44% said their monthly bills were too high. Many find that taking a vacation would end up putting them even deeper in the hole. That’s enough to take the enjoyment out of the trip.

“While a vacation is worth it, getting into debt isn’t. That just adds to the stress and takes away from the enjoyment of your vacation,” says travel expert Christopher Elliott, who writes the Navigator column for The Washington Post. While that trip to Disney or to the Grand Canyon won’t be happening, there are alternatives.

“Yes, people can stay home and have fun,” says Elliott, author of “How to Be the World’s Smartest Traveler.” “Think of all the time you’re saving by not having to go to the airport or spend hours or days sitting in a car. There’s no ‘Are we there yet?’ because you’re already there.”

Staycations Are a Thing

Every city in America has some sort of tourism board. They have activities, events, picnics, fairs, and more. Rather than spending thousands on a vacation, stay home. Maybe you avoid your chore list for a few days. Camp out near a lake for an extended weekend. Find a community pool if you don’t have one yourself.

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There’s cheap (and even free) concerts you can attend. Head to the city and hit up the museums. There are plenty of local and cheaper options to choose from. This is incredibly important if you want to stay ahead of your budget. And you still get to spend valuable time with your family. It’s just more important to get your budget in order.

Getting Your Debt Under Control

If you’re having a difficult time with your debt, there are several things you can do. The first is to get organized. You may not have a full picture of what you owe and who you owe it to. Sit down and lay it out in front of you. Write up a list of every debt, what’s owed, monthly payments, and so on. When you can see it in front of you, it helps you see what you’re up against.

If you have a lot of debts, you can try to consolidate them into a single payment. This can help save you money and lower your monthly output. Having a little extra money will help you be a better saver and put money towards worthwhile things. You can even refinance your auto loan and mortgage to get a better rate.

If you’re struggling with student loan debt, you may be eligible for a repayment plan. Repayment plans can lower your monthly payments based upon the money you make. They may even help you pay off your loan quicker than you realized you could. Again, putting a little extra money in your pockets can be a lifesaver when you need it.

Finally, learn from your mistakes! Make on-time payments to keep your credit in the green. Having good credit can help you through this process. Be proactive about your debt. Don’t just let it linger and not give it the attention it deserves. You’re not truly financially free with that black cloud hanging over your shoulder.

Photo by: Ryan McGuire

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Russell Wilson Bought Amazon Stock for His Offensive Line

Written by adminApril 26, 2019
Entertainment

Being an NFL lineman is a wonderful thing. You get paid millions of dollars to play your sport. But, if you’re good, the guy you protect likes to take care of you. It’s not uncommon for NFL quarterbacks to take their linemen out for dinner. Some buy their linemen expensive Rolex watches. They are the highest paid players in the NFL.

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Russell Wilson took gift-giving to the next level this week. After signing his new record $140 million contract, but bought each of his 13 linemen $156,000 worth of Amazon stock. Headquartered in Seattle, Wilson seems to have made the most Seattle-like purchase we can think of. Surely that stock will serve the linemen well in the future.

Russell Wilson spoke to TMZ about his gift.

“Every Sunday we go to battle together,” Russell Wilson said. “You sacrifice your physical and mental well-being to protect me, which in turn allows me to provide and care for my family. This does not go unnoticed and it is never forgotten.”

Still, being a quarterback in the NFL is never easy. You’re constantly getting hit as the opposing team would like nothing more than to throw you to the ground. Russell Wilson is also known as an agile and fast runner who can take off at a moment’s notice. Having that extra protection is key. It means a lot to Wilson that his line is there to protect him at all costs.

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“When I sat down to think of ways to honor your dedication,” said Russell Wilson, “a dozen different ideas came to mind. Some were flashy, some were cool, but I wanted to give you something that had a lasting impact. Something that would affect the lives of you, your family, and your children.”

Amazon stock is at a great value right now and will only seemingly continue to grow. It seems like the perfect way to honor someone and even encourage them to want to protect you even more. Seattle’s offensive line is far from being the best in the league, so perhaps this will be a bit more of an incentive to do a better job.

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‘Avengers: Endgame’ poised to set box-office records in US debut weekend

Written by adminApril 25, 2019
Entertainment

The culmination of 10 years and over 20 movies of the Marvel Cinematic Universe has come to this moment. Walt Disney’s “Avengers: Endgame”, the most anticipated movie event of the year is set to drop this week.

Having already smashed records for advanced ticket sales, “Endgame” will have the red carpet laid out for it to reach or even surpass $300 million in its inaugural opening weekend. That will be the highest opening in history, the current record holder being “Avengers: Infinity War” at $257.6 million.

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Online ticketing sites Fandango and Atom Tickets reported that 4000 showings have been sold out, which correspond to “Endgame” having the widest release of any movie in US film history. To handle the overwhelming demand, some cinemas have begun offering showings round-the-clock. In some areas of the country, moviegoers are still unable to find tickets for opening weekend.

Critics like Boxoffice.com chief analyst Shawn Robbins are skeptical of “Endgame” hitting the $300 million mark, calling it “mathematically challenging”, for a couple of reasons.

First up is the competition that “Endgame” faces from movies currently showing in theaters. “Shazam!,” “Hellboy,” “Dumbo,” “Captain Marvel,” and “Breakthrough” among others, are still slated to play in cinemas nationwide. As much as theaters would like to show just “Endgame”, contractual obligations have forced their hands to set aside screens to play these other films.

Secondly is the run time of “Endgame”. Standing at a whopping three hours, theaters can feasibly only show the film three times in a 12-hour period when you take into account the time it takes for previews and cleanup which can account for another hour.

In response, some theaters have included early-bird showings at 4am and 7am. Robbins believes that this won’t tip the scales too much for opening weekend. Taking into account that “Endgame” will be showing in 4600 theaters, which is more than the 4470 for “Infinity War”, each theater would have to bring in an average of more than $65000 each to come close to hitting the $300 million mark.

Robbins notes that “It’s unprecedented, it’s never happened, but it doesn’t mean that it can’t happen”. Inflation and rising ticket prices have helped to bump up these figures, and one has to take into account the number of IMAX theaters thrown into the mix, where tickets are usually more expensive than standard theaters.

On the global stage, “Endgame” is also slated to break records. The total global opening weekend has been estimated to range from $750 million to $900 million, with many analysts predicting it to be the fastest film to hit the $1 billion mark.   

Whatever the result, the Marvel Cinematic Universe has lived up to the hype thus far, and this weekend will definitely be the benchmark to beat for years to come.

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Social Security Set to Run Dry by 2035

Written by adminApril 25, 2019
Life Style

If you’re hoping to tap into social security for your retirement, there’s some bad news. Money is quickly running out. In 2020, the money paid out to social security will exceed what it brings in. That means we’re about to start tapping into reserve funds. This is the first time this has happened since 1982.

Of course, the reserves aren’t slated to last forever, either. By 2035, the reserves will be gone. It’s expected that 100% of benefits can be paid out during that time. But afterward, only 80% of social security benefits will be paid out. That means lawmakers are being pushed to fix this problem. The country only continues to grow, putting additional strain on the system.

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“Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing,” said the board of trustees, begging for help from the politicians in Washington. This is a dire warning that something needs to be done sooner rather than later.

Will Social Security Run Out?

By 2035, Social Security will have no choice but to lower its output. Even though people are paying into it, that can only be sustained for so long. By 2035, as stated, the program will be at 80% capacity. There will be no more reserve funds to cover the additional amounts needed to keep payments at 100%.

By 2052, the complete system is due to run out of money. But that doesn’t mean other parts of the program won’t run dry before then. For example, Medicare’s hospital trust fund probably won’t exist after the next seven years. There are various programs that make up the difference finances of the Social Security program. Many of those programs will run out of money between now and then.

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Costs are expected to rise as well. The annual cost of Social Security is slated to rise to 5.9% of the GDP by 2039. Total costs of Medicare will rise also from 3.7% to 5.9%. Currently, 68.3 million Americans are on Social Security. In the next few decades, many more are slated to be on the program.

As Americans live longer than ever, people stay on the programs longer than they used to. That’s why Social Security is running out of money. Since people are living longer, they’re using more than they paid into it. Time will only tell whether the government will step in and fix this problem before it runs out completely.

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