Tags: college graduate | millennial | recession | loan

CNN Money: New College Grads Are Experiencing Failure to Launch

By    |   Tuesday, 10 June 2014 12:24 PM

Half of recent college grads — those who started college in 2007, just before the Great Recession — are still relying on their parents for money, CNN Money reported.

A study by the University of Arizona showed those former students, many of whom graduated during one of the worst economic downturns in U.S. history, are still struggling in ways that could affect the broader economy.

Many of them said their financial situations have caused them to postpone life goals such as getting married, having children or buying a home, CNN Money said.

Editor's Note: 38 Trades That Could Turn $1,000 Into $49,000

"There's been a deferral of those things we would traditionally think people would start to do at this age," said Ted Beck, president of the National Endowment for Financial Education, which helped sponsor the research.

"People are not willing to make those commitments until they're on more solid ground."
Only 49 percent of graduates said they work full-time. Even among those who had full-time jobs, nearly half say they still rely on family for financial support.

"Whether or not a weak labor market is increasing the need for intergenerational support — a likely driver in today's economy — our data clearly showed that many young adults today may not be earning enough to make it on their own, even when working full time," the report states.
 
Full-time workers reported earning between $40,000 and $60,000 a year, while part-time employees said they earn between $25,000 and $40,000.
The weight of student debt also plays a role in the financial straits of some recent college graduates.

The Obama administration said this week it would move to cut the monthly student-debt payments for millions of Americans in the face of growing loan defaults.

The Wall Street Journal reported that the plan attracted criticism from congressional Republicans, who said it would make the federal deficit worse. They also questioned the president's authority to act without Congress on the matter.

The federal government is the largest student lender, making taxpayers responsible for defaulted or forgiven loans. Student debt has doubled to $1.1 trillion since 2007.

CNBC reported on a new Wells Fargo study that showed four in 10 millennials – those born between 1980 and 2000 -- are “overwhelmed by debt,” with almost half spending at least 50 percent of their monthly paycheck paying off loans of one form or another.

CNBC reported credit cards are the biggest problem in millennials' monthly expenses, followed by mortgages and student loans.

Editor's Note: 38 Trades That Could Turn $1,000 Into $49,000

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Half of recent college grads — those who started college in 2007, just before the Great Recession — are still relying on their parents for money, CNN Money reported. A study by the University of Arizona showed those former students, many of whom graduated during one of the...
college graduate, millennial, recession, loan
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2014-24-10
Tuesday, 10 June 2014 12:24 PM
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