-----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Dewayne Hendricks Sent: Saturday, April 27, 2013 11:36 PM To: Multiple recipients of Dewayne-Net Subject: [Dewayne-Net] Young and in debt
Young and in debt Amid news that student debts may have long-term effects on US economic growth, we ask if students have any other choice? Apr 27 2013 <http://www.aljazeera.com/programmes/insidestoryamericas/2013/04/20134279310 729201.html> The US economy is growing, but only at a rate of 2.5 percent. And financial regulators say the rising rate of debt as a result of college loans may be hampering the struggling economy. A report from the Financial Stability Oversight Council warns that debt burdens combined with a poor job market means many students cannot make their payments. That then negatively impacts their credit which then reduces their ability to qualify for loans to buy big-ticket items, like homes and cars. And recently, the American Medical Association also warned that the high cost of college tuition is having a negative impact on the medical profession, leading to a decrease in the racial diversity of the physician workforce, as well as a decrease in the number of doctors who specialise in primary care. According to analysis by the New York Federal Reserve, around 13 percent of student borrowers owe more than $50,000. Another 40 percent owe less than $10,000; nearly 30 percent owe between $10,000 and $25,000; and around 18 percent owe between $25,000 and $50,000. During his recent budget proposal, the US president outlined changes to federal student loans. Barack Obama wants interest rates on the loans to be pegged to annual market rates. The current rate of 6.8 percent for most undergraduate loans, and 3.4 percent for subsidised undergraduate loans was set by Congress. Under the president's proposal, the rates would be based the government's borrowing costs which are at an all-time low. That means that current interest rates for student loans would be reduced to 4.75 percent, and for subsidised loans it would be 2.75 percent. But critics say that without a cap on student loan interest rates, borrowers may end up paying far more in the future. [snip] Dewayne-Net RSS Feed: <http://www.warpspeed.com/wordpress> _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
