That's the amount of outstanding debt carried by more than 38 million student loan borrowers, according to a May 8 report by the Consumer Financial Protection Bureau. While federally guaranteed student loans through the Department of Education frequently provide income-based repayment plans for those who need help, such practices are not as common with private student loans, according to the agency. The outstanding balance of 850,000 private student loans comes to roughly $8 billion. There could be a domino effect as the debt burden prevents younger borrowers from qualifying for a mortgage or gaining access to credit to start a business.
April 12, 2013 - If you’re a student or the parent of one, you’re quite familiar with the ever-increasing costs of higher education. Many students have been saddled with enormous debt. Bloomberg News points out how that debt overhang is making it difficult -- if not impossible -- for young people to qualify for a mortgage to purchase a home.
February 22, 2013 - Helaine Olen has had it with self-proclaimed personal finance gurus offering glib advice. In her new book, "Pound Foolish," she describes how middle-class families are being buried by stagnant wages, and the rising costs of housing, education and health care emergencies. Meanwhile, she argues, the replacement of pensions with 401(k)s means financial firms found millions of new customers, but workers ended up worse off. The "personal finance and investment industrial complex" profit while half of Americans live paycheck to paycheck.
U.S. households reduced debt during the first quarter by 1 percent to the lowest level since 2006, resuming a deleveraging trend in the wake of the financial crisis, according to the Federal Reserve Bank of New York.
After working 37 years in the coal mines of West Virginia, Ronny Justice punctuates his sentences with coughs. He lost his job a year ago, leaving him without health insurance just as he’s battling the early stages of black-lung disease.