Student Loan Consolidation

Most people assume that all forms of debt are the same. Take out a loan when you need it and that’s it. Sign the dotted line and you can have whatever you want. Whether it’s a new home, a vehicle, or student loans for a college education, credit makes the world turn. The average person cannot afford to pay cash outright for those things.

The problem is, student loans are a different type of beast altogether. Many don’t fully understand what they’re getting themselves into. Young people go into it with the assumption that it’s worth the cost. Like consumer debt, the expectation is, when you borrow the money, you’ll pay it back.

If you can’t pay back traditional debt, people just ignore it and walk away. Yeah, it’ll go to collections and hurt their credit, but eventually, it goes away. You can declare bankruptcy if it gets really bad. The same isn’t true of student loans. If you take out a student loan, you’ll be a hunted animal until you pay it all back. There will be no escape.

To learn more about student loans and how you can overcome them, give Financial Helpers a call today. We’d love to talk with you about your options. You can reach us at:

Call Now 844-332-2079

Student Loans and Non-Payment

With normal loans, collateral is involved. If you don’t pay, the bank will repossess and get its property back. With student loans, there is no collateral. They will come after you to ensure payment. They’ll garnish your wages, pursue you relentlessly, and can even require legal action. It’s a never-ending cycle.

The worst part is, student loans never disappear. If you don’t pay them, you’ll go into default and that will permanently scar your record for life. In that case, you’ll most likely never get approved for a mortgage or car loan. Banks won’t trust you to pay back your loan if you’re in default.

Another key difference between regular debt and student loans is bankruptcy. If you get in over your head with other debt, bankruptcy is an option. It might hurt your credit for a while, but things often return to normal. You can’t do that with student loans. It’s extremely difficult to discharge student loans through bankruptcy. It’s not impossible, but fairly close.

Statute of Limitations

Most student loans are backed by the federal government. They’re handed out and dealt with by the Department of Education. There are also private loans given out by private companies, but those types are becoming fewer in recent years. This is important to know because many believe they can rely on the statute of limitations.

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With most loans, it will disappear off your credit report after seven years. Federal student loans won’t. This was already touched on earlier, but these loans stick with you. It will not fall off your credit. While this is frustrating to those with student loans, there are protections available to those who qualify.

Debt Protections

The amount of student loan debt continues to climb. Monthly payments can nag someone for 10-20 years, depending on how much they have. Many millions of people are struggling under the intense burden of this crisis. So far, the amount of student loans has reached $1.53 trillion and climbing.

That’s why the government has created several repayment plans and even offers full student loan forgiveness. This is available for public service workers, such as nurses and teachers. To learn more about these programs, call Financial Helpers today at the number listed above.

Student loan debt continues its record-breaking rise in the United States. As of November, the amount of outstanding debt has reached $1.465 trillion. As with any kind of debt, this amount is creating a lot of fiscal risks and putting millions of Americans in danger.

“Over 90% of student loans are guaranteed by the U.S. Department of Education, meaning that if a recession causes a rise in youth unemployment and triggers mass defaults, this contingent liability could prove burdensome for the U.S. government budget,” said Paul Della Guardia, economist at the Institute of International Finance in emailed comments.

Most of the student loan debt has accumulated since the recession is ended. As the numbers continue to increase, so as the number of students who have defaulted. Those who defaulted have done so at a faster rate than at any other time in history. It’s definitely revealing a lot of hardship within the younger generations.

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The Age of Student Loan Debt

The largest age group since 2012 to suffer under the burden of student loan debt continues to be millennials. They are between the ages of 24 and 33. This is the age when most of us seem to be the most financially vulnerable. Unemployment was twice as high back when this age group attempted to join the workforce.

Even after they graduated, it took lineal three times as long to find a job than it does today. You can imagine the amount of frustration and misery that endured during this time. You had people graduating college with thousands of dollars’ worth of student loan debt. One they did graduate, they had no opportunities. The jobs just weren’t there.

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The students found themselves in a cycle of perpetual student loan debt. Their loans defaulted but still collected interest. The interest rate for a direct student loan before July 1 of 2018 is 100% higher than it was in 2012. This only adds to people’s trouble, as they can never dig themselves out of the hole. No matter what they pay, interest comes right back behind and adds more.

Broken Down by Age

• Ages 25-34 owe $489 billion
• Ages 35-49 owe $530 billion
• Ages 50-61 owe $213 billion
• Ages 62 and over owe $62.5 billion

It’s interesting to see that even baby-boomers and the oldest generation still owe billions. Student loan debt hits every generation. There appears to be no help in sight.

Yesterday evening, the case against the U.S. Department of Education was finally settled. We’ve been covering the developments and now it would appear that Betsy DeVos loss her case. She is set to cancel out over $150 million worth of student loan debt. This money is specifically for students who were defrauded by for-profit schools that are now closed.

From the beginning of the Trump administration, it’s been obvious they weren’t interested in helping students. In fact, DeVos brought onto her team numerous CEOs who once worked for the very for-profit schools that were causing problems. From day one, she set out the cutback on Pres. Obama’s student loan debt policy.

The Obama administration created a program to help borrowers who were defrauded. The students were meant to obtain student loan forgiveness and have their debt removed. But DeVos had other plans. She thought this policy was unfair to taxpayers, as they would have to foot the bill for their college education.

DeVos had a different plan in mind. Rather than just blanket student loan forgiveness, the government would award benefits on a salary scale. The idea is to determine how much money a person is making from their degree. Would it be fair to taxpayers to pay for your education, especially if you’re making money from it?

To learn more about student loan debt and how you can get your loan forgiven, give us a call! We’d love to help you get on the right track. You can reach us at:

Call Now 844-332-2079

The Judge’s Ruling

It wasn’t long after DeVos attempted to cut Obama’s policy before states started stepping in. Her attempts to keep the slaw from being enacted was illegal. A federal judge ruled against her back in October. DeVos is now being forced to enforce Obama’s student loan debt protections. If a borrower was scammed by a for-profit school, they can have their loans discharged.

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Around 15,000 people are eligible to have their loans discharged, but they must follow the tenets of the program. They have to apply and show that they were scammed. Half of these borrowers went to Corinthian college, who filed for bankruptcy and closed in 2015. The process can take up to 90 days to complete. The Department of Education will begin to notify those with this type of student loan debt.

Those with Student Loan Debt and Lawmakers Still Not Happy

“This is a good first step, but it’s not good enough. … [DeVos should] abandon her attempts to rewrite the borrower defense rule to let for-profit colleges off the hook and instead fully implement the current rule and provide relief to more than 100,000 borrowers who were cheated out of their education and savings,” Sen. Patty Murray (D-Wash.), a member of the Senate Education Committee.

Despite these rulings, DeVos still has a fight on her hands. She still looking at creating a student loan debt policy that’s stricter on forgiveness. She continues to push the boundaries of the law. It looks likely that she will be investigated for her role in pulling back support for defrauded students. Protecting these students should be the government’s priority, but it’s not.

Student loan debt is such a major problem in our country. Currently, 44 million Americans owe over $1.53 trillion worth of debt. But, it’s not just the students who are struggling under the massive weight. Parents are also burdened after making the decision to help their kids pay for college. It seems like a worthwhile investment until it’s not.

According to the Brookings Institute, 3.4 million parents have taken out what’s called a “Parent PLUS” loan. These loans are designed for parents to help their kids by taking on the cost of college themselves. So far, parents owe $90 billion in student loan debt. It’s hurting parents as much as it would’ve hurt their kids.

The difference is, most parents believed themselves to be in good financial standing beforehand. The current average balance for parents who took out a PLUS loan is $26,000. That’s up from $16,000 in 2014 and $5,200 in 1990. Make no mistake about it, student loan debt is hurting many people and continues to get worse.

If you’re struggling with student loan debt, give Financial Helpers a call. We’d love to talk with you about your options. You can reach us at:

Call Now 844-332-2079

Parental Student Loan Debt

Haydee Cruz is one of those millions of parents who decided to help their child pay for their college education. Cruz claims that when she and her daughter toured Full Sail University in Florida, they fell in love. The decision to pay for college was an easy one. Of course, making $50,000 a year, they didn’t have $160,000 laying around.

So, they got a loan to pay for four years of tuition as well as living expenses. For years came and went and now Cruz finds herself in the middle of a battle. Her student loan debt bill costs her $600 a month. That price barely covers the interest. According to Cruz, thanks to interest and fees, the debt has ballooned to over $200,000.

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This is where it gets even tougher. Cruz believes that she will be 85 by the time the debt is paid off. The student loan debt won’t allow her the ability to save for college. Every extra bit she gets goes right into the loan to keep it active. At 63, Cruz will most likely spend the rest of her life paying back this student loan debt.

“I have nothing that is going to sustain me if I stop working,” Cruz said. “This loan governs my life.”

College Tuition Continues Rising

It might seem like as simple solution for parents not to intervene. Of course, a parent wants to ensure their child is set up for a great life. They’ll do anything to help, even at their own expense. But as the cost of a college education gets increasingly expensive, parents have no choice.

There are limits to the amount of money a student is allowed to borrow. Because they are hitting that limit more often, parents are stepping up to fill the void. It’s hurting them financially. It’s strapping them for a decade or longer. Five years into repayment of student loan debt, only a third of it is complete.

“We shouldn’t force parents to make a choice between sending their kids to college and taking out a loan they can’t afford,” he said.

It’s still early December, so maybe you haven’t begun thinking about your resolutions for the new year just yet. That’s okay. Financial Helpers is here to help you improve your finances for 2019. More money is often right near the top of the wish list anyway. The problem is, student debt makes saving money difficult.

Managing our money and making tough financial decisions can be difficult, especially if you have student debt. We all want to live as large as possible! A lot of people find themselves living beyond their means. If they have student debt, it might force them to use their credit to buy the things they want.

As the debt piles up and balancing the checkbook becomes a strain, it’s good to take a few steps back and assess your financial situation. If it looks bleak, then you need to pull back some and set realistic financial goals. It’s the ONLY way you achieve the success you truly want. Overcoming student debt won’t be easy, but it’s possible. You have to focus.

All it might take is a few small steps to add up to huge results. In time, you’ll be able to regain your financial freedom and be free from student debt. In the meantime, give us a call! We’d love to help you overcome your student debt burden. You can reach us at:

Call Now 844-332-2079 

Here are 5 financial goals you should be making for 2019 and beyond:

1) Reflect on Where You’re at and Plan!

You still have a few weeks until 2019 starts. What does it hurt to take a step back and access your spending habits? Are you piling on too much debt? Are you at risk of defaulting on your student debt because of your spending habits? It might seem like a good idea to just ignore your student debt, but it will hurt you later. Going into default will wreck your credit.

Seriously, take the time to go over your budget. Look at the things you spent money on and see if those costs were worth it. Can you see room for improvement? Were any of your purchases a waste of money in the end? Be vigilant! And when you find something, start cutting down your bills. The quicker you pay off your student debt, the happier you will be.

2) Cut Your Spending

P Lemann, owner of the world’s largest brewery, was once asked why he focused so cutting costs. His answer was simple: “It’s the only thing that doesn’t depend on anyone else. It’s the one variable that is always 100% in your control”. This practice allowed him to become a billionaire.

If you want to get rid of your student debt, take a page out of the private-equity book and cut expenses. Figure out ways to live on as little as you for a short amount of time. The temptation to spend is understandable, but it’s deadly. If we get a little bit of money in, our initial desire is to spend it and live as largely as possible.

But that’s not really the way to gain financial freedom and pay off student debt. Rather than buying a new TV with your tax return, throw it into your debt. Pay that off. Bring down your interest rates. Live on as little as you comfortably can, take the rest, and plug it into your student debt.

3) Cut Your Student Debt!

We rally against student debt because it’s a major budget killer! If you must use credit to buy something you can’t afford, you’re not doing yourself any favors. This is especially true if you have student debt. Yes, there are a lot of things you must buy in this world that you can’t afford out of pocket. If you want a nice car or that big family home, you need to use credit to get it.

Kevin O’Leary of Shark Tank suggests you bite the bullet for a couple of years. Live at home if you have to. Plug every dollar you have into paying back the student debt. Once the monkey is off your back, you’re home free. Instead, people are making the mistake of underestimating the impact of their debt. They pile on more without thinking about the consequences.

4) Save, Save, Save

This might seem like it contradicts point #3. But saving money should be a priority for everyone. You NEED a rainy-day fund. You need emergency cash. Your very life could depend on it. You don’t know what’s going to hit you around the corner. What would happen if you lost your job tomorrow? Or you got sick? Having money saved is essential, especially if you have student debt.

5) Make Investments

If you want to make the biggest bang for your buck, it’s no longer enough to just save your money. That’s what we think we need to do and hopefully, it’ll be there waiting for us when we’re ready, but it doesn’t necessarily work that way. Inflation, rising costs, fees, and a higher cost of living will bite into that chunk.

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Maybe you’ve been saving for a decade, but then have a medical emergency and it wipes out your savings. It’s been known to happen. But part of having financial freedom means you won’t be cast into bankruptcy if someone major happens. You’ll have the funds to cover whatever it is that comes your way.

This is especially true for people with student debt. Thanks to this pesky problem, many young people are not investing for retirement. They expect they’ll be just fine, or they’re too young to worry about it. But, they do need to worry about it. The best way to save and make money is through investing.

Millennials certainly seem to be of a different breed than previous generations. So far, we’ve seen them actively kill numerous industries across the country. It was once thought that they just didn’t have the same taste for material goods. Maybe they learned different spending habits? The answer might be simpler than that: student loan debt.

“Millennials, long presumed to have less interest in the nonstop consumption of goods that underpins the American economy, might not be that different after all, a new study from the Federal Reserve says,” said Bloomberg’s Luke Kawa.

“Their spending habits are a lot like the generations that came before them, they just have less money at this point in their lives, the Fed study found. The group born between 1981 and 1997 has fallen behind because many of them came of age during the financial crisis.”

Certainly, one of the major crises points of this generation has been student loan debt. The millennial generation goes or student debt than the previous two generations have ever owed. 44 million Americans owe $1.53 trillion in student loan debt. And this number is a going down anytime soon.

To learn more about student loan debt and how you can get help, call Financial Helpers today! We’d love to hear from you. You can reach us at:

Call Now 844-332-2079

Student Loan Debt Cripples Young People

When the Great Recession hit, it was at a time when the millennial generation was starting to come up. Jobs are scarce and many fell into the lure of predatory advertisements from for-profit schools. The schools promised that they had high job placement rates. They really had nothing of the sort.

Many millennials, broke and jobless, effortlessly signed on the dotted line. They could afford college, so they took out loans. When they graduated, they still had no job but now were under mounds of student debt. How can anyone keep up with monthly payments if there’s no work? Going into default, their credit scores tanked.

“Millennials are less well off than members of earlier generations when they were young, with lower earnings, fewer assets, and less wealth,” the study said, adding, “Conditional on their age and other factors, millennials do not appear to have preferences for consumption that differ significantly from those of earlier generations.”

Student Loan Debt Changed Spending Habits

If there’s one thing you have to do, it’s to make a living. We all know the process. Graduate high school, go to college, start a family, get a new car, and buy the dream home. The problem is, student loan debt has changed this pattern. Now, millennials cannot afford to get married. They have so much student loan debt that they cannot buy a house.

Many studies have revealed the millennials are putting off major life decisions. And it’s undoubtedly wrecking our economy. We wrote an article a few days before about millennial’s not feeling that optimistic about the current economic recovery. It seems to have no impact on their spending habits.

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“I think we have got a very significant psychological scar from this great recession,” Kimberly Greenberger, a Morgan Stanley analyst, told Business Insider in 2017. “One in every five households at the time were severely negatively impacted by that event. And if you think about the children in that house and how the length and depth of that recession really impacted people, I think you have an entire generation with permanently changed spending habits.”

Student loan debt is only going to continue to climb. Unless the government steps in now, future generations will be bogged down by an even worse problem. The cost of a college education only continues to get more expensive. The only way out of this crisis is for less people to go to college in the first place.

The student loan problem in the United States has reached an epidemic. Here at Financial Helpers, we’ve covered just how badly student loan debt has hurt people’s lives. They’re unable to save money. In fact, it’s forcing millennials to put off major life decisions. They simply can’t afford a normal life.

If you have no money and no savings, what happens during an emergency? If you have student loan debt, having any money ready for a rainy day is impossible. In fact, many Americans go without health insurance. It’s difficult to know the exact number of people who are currently uninsured in the U.S., but estimates show that number can be anywhere between 20 and 30 million people.

Health insurance is too costly in this country. Being covered is one of those tricky things that can ultimately hurt you if you’re not. Even if you do have insurance, there can be gaps in your coverage. High deductibles can put you in a financial bind. But if student loans have your budget tapped out, how can you afford a single doctor’s visit?

Because people can’t afford health insurance, they’re out of luck It’s forcing people to put off life-threatening treatments. Even if they do manage some insurance, it costs too much to use it. If you’re paying off a student loan, you probably don’t have the money.

To learn more about the student loan crisis and how we can help, give us a call! We’d love to hear from you. You can reach Financial Helpers at:

Call Now 844-332-2079

Student Loan Debt Causes a Crisis

That’s what one woman from Arkansas found out the hard way! CNN reported a story of a woman who was three months pregnant and collapsed in a parking lot. She was rushed to the emergency room and despite having insurance, she still had to pay $830 out of pocket.

The hospital gave her two choices: pay the bill or get a loan through their financial institution. For most people, this sounds like a great deal. With the loan, you can still pay the bill, but on a more manageable scale. But if you’re already buried under a mound of student loan debt, adding more does you no good.

Right now, around 20%-30% of hospitals are offering this financing option, but it leaves a lot of experts with a bad taste in their mouth. A lot of private doctors do offer services to help their financially strapped patients. But, there is something to be said about pressuring someone to secure a bank loan to pay the bill. Especially after an emergency.

The Cost of Health Care

There’s more it than the moral question of whether a hospital should use high-pressure tactics to during an emergency. A lot of the problem has to do with the cost of health care. Most insurance companies can negotiate what they consider a fair price for the services provided.

If you immediately sign up for a loan with the hospital, you’re not going to get the discounted services. The hospital is going to use their own inflated price list. This is a cost most Americans cannot afford.

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There are many Americans who also have high deductibles. One person in Florida had to pay $13,000 out of pocket for an emergency procedure. What is a person to do when most Americans don’t even have $400 in their savings due to a student loan? Student loan debt is forcing hospitals to make decisions that hurt patients.

Paying Back the Bill

The best thing to do if you find yourself in this situation is to be upfront and honest with the hospital. Tell them you cannot afford the bill. They often have other resources. Financial assistance and government help is possible. They can even screen you to see if you qualify for Medicaid. Don’t let a student loan keep you from getting help.

If none of that works, then you might have to eat the bill. Rather than getting pressured into a loan that day, take the bill home and do your research. There may be local, state, and federal avenues that exist to assist you. Also, don’t be afraid to negotiate with the hospital on a better price. They want to get paid, so they might just work with you to get it done.

The current economic mood across the country is highly optimistic. President Trump’s tax policies and business incentives seem to be spurring on tremendous growth, with job numbers at near historic highs. But, as we reported yesterday, millennials aren’t optimistic at all about the economy. They have good reason not to be, as student loan debt is weighing them down.

While the mood is optimistic, we’ve also seen how quickly things can change. Minutes after Trump proposed steel and aluminum tariffs against China, the stocks dropped over 700 points. Thoughts of an impending trade war with the world’s second-largest economy spooked a lot of investors.

Then, we see that GM is shutting down factories and cutting jobs. These tariffs are hitting the car industry in a major way. This is just one sign of how quickly things can go wrong. There’s talk of another recession coming around the corner. If you have student loan debt, this is scary. You’re already reeling and putting off major life decisions.

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Saving for Retirement is Difficult if You Have Student Loan Debt

Over the past decade, we’ve seen student loan debt hit the $1.53 trillion mark. A lot of it has to do with the number of people who decided to go to college when times got bad. They thought a shiny new degree would help them find better work, but all it did is make their lives worse. Burdened with student loan debt, they struggled.

Still, after coming back from a massive recession that hit this country hard for over a decade, huge market swings are a result of troublesome times. It’s not just economically either. If you have all this debt, even in good times, how can you save? There’s no room for an emergency fund. And what about retirement?

Studies reveal that millennials aren’t saving for their retirement. In fact, they’re not saving any money at all. They can’t. Student loan debt sucks up every extra dollar they have. It can take a decade or longer to pay back those loans. So, how are they able to save money for retirement?

Here are four ways you can stay proactive and protect your retirement no matter the economic climate:

1) Start Creating a Cash Buffer

One of the first things you can do is whip out the calculator and start doing some math. You’ll want to have a good idea of your spending and estimate the amount of fixed income you’ll receive. This can include your social security, pension, and other forms of income.

When you’re retired, your flow of income usually covers about 2/3 of total spending, so for that other 1/3, you should be prepared in case the market goes down. By having a buffer, you can siphon cash until the market rebounds.

2) Create Balance in Your Portfolio

Having student loan debt makes it hard to save money. But your future demands it. You won’t be able to survive your golden years if you don’t. You don’t know what type of ailment you have. Working until 70 just isn’t feasible. You’re going to have to make proper investments to make up the difference.

As the saying goes, do not put all your eggs in one basket! You should mix your investment in a few different areas, like certificates, cash, bonds, and commodities. Certain commodities, like gold, are immune to the stock market and hold their price fairly well. If you have a stash in something else along with stocks, if the market is down, you won’t lose your lunch.

3) Don’t Underestimate Spending

Most people think they’ll spend less money in retirement, so they don’t plan ahead as well as they should. The reality is, the majority of retirees end up spending more money, especially at first. Don’t underestimate how much money you’ll spend in your later years. That also means paying off your student loan debt earlier than anticipated.

You spend more in retirement because you have a lot more time on your hands. When you worked for a living, you didn’t have as much time to spend the money you would’ve otherwise. Retirees are also notorious for spending their days traveling abroad and going on vacations. Don’t cheat yourself out of your golden years.

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As much as you might not want to hear it, it’s a good idea to shorten up the bucket list a little bit to stretch your money out longer. And curb some of your spending right now. Put all your effort into paying off your student loan debt as soon as possible.

4) Try Not to Borrow

Adding debt onto debt does no one any favors. You don’t know how the economy will be a year from now. Again, focus on your student loan debt first. If you have to live at home for a few years after college, do it! Then you can put the majority of your income into paying that off. That will also allow you to put some cash into a bank account for a rainy day.

The goal is to decrease your risk and your spending. Diversifying your investment is always the best choice to prevent the unforeseen from happening. Be smart with your spending. Once the loans are paid off, life will be simpler.

Earlier this week, it was reported that David’s Bridal is filing for Chapter 11 bankruptcy. Earnings have on the downside for some time. Their chief complaint about why sales are doing so badly? It’s millennials. For some reason, they’re just not getting married. If you’ve been paying attention, then you understand why: student loan debt.

Graduating from college with massive amounts of debt is going to hurt the economy. There’s no doubt about it. We’ve been talking about it for a long time at Financial Helpers. This next up and coming generation is unable to make the same life decisions their parents and grandparents did. They’re even living at home well into their thirties.

It’s not that millennials are the ‘lazy’ generation, that many might believe. It’s solely due to their student loan debt. The cost of getting a college education today is far more expensive than it was even a decade ago. Combine that with trying to find work during the Great Recession, and you have a problem.

But right now, it’s not 2008. It’s 2018. The economy is roaring at a pace faster than it’s ever grown before. The stock market has hit milestone after milestone. There are now more available jobs than Americans to fill them. Things are good right now, but once again, millennials aren’t buying the news.

To learn more about student loan debt, give Financial Helpers a call today! You can reach us at:

Call Now 844-332-2079

Student Loan Debt Makes Millennials Skeptical

Thanks to Trump’s economic policies, the U.S. has lower unemployment than it’s probably ever seen. But millennials don’t feel safe. They’re not buying the good news. According to a new study, conducted by Ernest & Young, a majority of millennials feel they have no financial security. That’s due to their student loan debt.

Because millennials either have student loan debt or plan on taking it on in the near future, they’re putting off major life decisions. David’s Bridal is just one of the impacts. This generation simply isn’t getting married. They’re not having babies either or buying homes. 80% of those surveyed said student loan debt is forcing them to push off major life goals.

So, when they hear that the economy is doing well, they have every right to be skeptical. They don’t believe the ‘good times’ will last. And it’s not just how they feel things are going right now, but for their future. 75% who were surveyed don’t think social security will be available when they need it.

Fear Will Drive Future Policy

70% don’t think they’ll have enough money saved up to endure retirement. Many plan to work well into their 70s if they have to. They also feel as if Trump’s tax cuts are unfair to the average worker. Giving these major corporations a major cut boosts their bottom lines, but what does it do for struggling students?

“Across party lines, millennials remain wary about a tax system that they perceive as unfair, and the [tax overhaul] did not change that view,” said Cathy Koch, the America tax policy leader for Ernst & Young. “It will be interesting to see how this perception affects political debate and future policies as millennials become policymakers in the coming decades.”

http://financialhelpers.com/the-government-could-do-more-to-cancel-student-debt-heres-proof/

The Great Recession, combined with the student loan debt crisis, has crippled future generations. They now remain skeptical about their future and are turning out to vote. It’s going to take a comprehensive step towards forgiving student loan debt to change their minds about this growing crisis.

As millions of Americans struggle under the massive burden of student debt, they desperately reach out to the government for help. Candidates who run on ending income inequality often do well in elections as of late. One of their greatest promises is indeed to end student debt and offer forgiveness to everyone.

Once elected, they seem to take a more cautious approach. Student debt forgiveness just doesn’t seem to happen for anyone, regardless of what side of the aisle they suit up for. They claim they don’t have the money. Then, when something big comes along these politicians really want, they somehow have the money to splurge.

Cue the “Amazon Effect”.

As soon as mega-retail superstar Amazon announced they are expanding, suddenly money freed itself up. Over 250 cities found themselves begging the world’s richest man to make their town a priority. Landmarks were lit up in Amazon colors. Even Andrew Cuomo, governor of New York City, made an interesting offer.

Billions in tax subsidies, along with changing his name to Amazon, if that’s what it took, to bring Amazon home. It’s quite interesting to see this progressive, income-equality seeking mayors acting this desperate. There’s no doubt bringing Amazon to their town would increase the price of rent and everything else in their town.

“This was a company that was going to grow and almost certainly going to expand to these regions,” Stacy Mitchell, co-director of the Institute for Local Self-Reliance, an economic think-tank. “They don’t need a subsidy at all. And it’s ridiculous and shocking that Bill de Blasio, who ran on a platform of fixing economic inequality, worked so hard to bring in a project that’s going to cause a lot of hardship for working-class New Yorkers.”

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Helping Those with Student Debt

The prostrating is over, as Amazon chose its two locations. Ron Kim, a New York State Assembly Member, had a great idea. He said he’d be introducing legislation that would take the money offered to Bezos and instead cancel $80 billion in student debt for their citizens.

“Giving Jeff Bezos hundreds of millions of dollars is an immoral waste of taxpayers’ money when it’s more than clear that the money would create more jobs and more economic growth when it is used to relieve student debt,” Kim said in an emailed press release.

“Giving Amazon this type of corporate welfare is no different, if not worse, than Donald Trump giving trillions in corporate tax breaks at the federal level. There’s no correlation between healthy, sustainable job creation and corporate giveaways. If we used this money to cancel distressed student debt instead, there would be immediate positive GDP growth, job creation, and impactful social-economic returns.”

It wasn’t that long ago Amazon found itself in the middle of a controversy. Workers protest they need a living wage. Even Vermont Senator Bernie Sanders was on their case, regularly attacking Bezos for not paying his employees well. It led to a bump in pay, but not by much.

Kim noted that canceling out people’s student debt could add $108 billion PER YEAR to the GDP. Having extra money on their hands, students would reinvest the money into the economy. Studies reveal that people with student debt delay major life decisions simply because they can’t afford it.

A Better Idea

Having millions of young people graduate college with tons of student debt helps no one. It’s forcing people to delay major life decisions. They’re not buying homes, taking out a car loan, or even marrying. They put off having children. This hits the economy hard. They’re making student debt payments and living at home with parents instead.

http://financialhelpers.com/the-problem-with-broad-student-loan-forgiveness-is-a-compromise-possible/

“I think the case is fairly strong here,” said Mitchell. “Not quite as strong in the case of the mortgage crisis, but it’s pretty close. We have the data to show that when we have lots of young folk entering the workforce underwater, they tend to delay house-buying and family formation and starting their own business and seeking employment that will be more remunerative in the long run because they’re just trying to stay afloat.”

The point remains. If these cities and states can find it in their heart to offer billions to a billionaire, they can help their constituents pay off their student debt. If they do, the job boom and economic progress they’ll make would far surpass the benefits Amazon could bring.