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.
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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.”
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.