There were a two articles listed on CNN’s website last night that caught my attention. Interestingly enough, they were listed one after the other. Together, they don’t exactly paint a rosy picture for my generation.
The first article dealt with the massive student loan debt that we are taking on, and how it affects life decisions. Like buying a house, getting married, or starting a family. It’s absolutely true – my student loan payment is very significant. I have no idea how much longer I’ll be paying it off. It’s been about 6 years now, and it really doesn’t seem like I’ve made that huge a dent in it.
With housing prices rising faster than inflation, and college prices rising faster than inflation, and starting salaries rising slower than either, what’s a new graduate to do? Rent until they are 30 to save up for a down payment on a house? That didn’t work for me – student loan payments made sure of that.
The next article was about how Social Security might run out of money is about 35 years. People would then only get about 3/4 of what they were getting. Instead of trying to correct for it now, Congress will probably just wait until it’s too late and drastic measures need to be taken. Here’s one thing I don’t understand: only the first $94,200 is taxed for Social Security and Medicare. Why not raise that limit? If you make less than $94,200, you won’t notice anything. If you make a little more than that, you’ll notice a little bit. If you make a lot more, you’re already making a lot, and you are better able to deal with it.
Now I’m not trying to make it sound like we’ve got it so bad. I’m just saying it looks like there is trouble ahead, and no one in charge seems to care.
5 replies on “The Bankrupt Generation”
i’ve read quite a few articles along these lines. it’s pretty depressing, especially as i’m about to graduate and resume paying student loans. i just remind myself how lucky i am that isaac has very little debt, and that between the two of us, we should be doing pretty well within a few years. i’m gonna try not to let my loan payments hold me back, and just accept them as yet another bill to pay, and not really pay attention to how long i’ll be paying it. it’s just a shame that since we’ll be paying for our own education until our kids go to college, we probably won’t be able to pay for them to go, and they’ll be in the same boat.
oh, but the thing that really, really, really gets me is that the government is making it even worse for kids in college now, and just starting. the interest rate on government backed student loans is going up, and you won’t be able to consolidate and keep your grace period anymore – it’s either/or. i think it’s a f-ing crime that the government makes money off of those who can least afford to get a damn education, but refuses to tax the already rich. what in the hell is wrong with these people???? my new apartment is less than a mile from the white house….watch out.
I took the address from your pictures on snapfish, and was surprised at just how close you are to the White House, Mall, etc… And best yet, Julia’s favorite aunt will only be five hours away…
i better be the favorite! i’m the one that’s gonna take her shoe shopping. i’m very glad to be that much closer. you guys can’t move any further away now.
The Bankrupt Generation…
If fewer graduates can afford houses, the subsequent decrease in demand should reduce housing prices…….
I like how on the direct loans website they say…most loans can be paid between 12-30 years…..30 years!!! i won’t even remember college in 30 years and what happened from years 1-11…..interest payments my friends…interest payments. The government is making a killing. But don’t worry folks…I’m sure they will put our money to good use….