Aug 8 - Upper-Middle-Income Households See Biggest Jumps in Student Loan Burden

By ahenson - 08-08-2012, 09:45 PM - Boxden > BX Daily Bugle - news and headlines

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Rising college costs and a sagging economy are taking the biggest toll on a surprising group: upper-middle-income families.

College Debt Hits Well-Off - WSJ.com

According to a Wall Street Journal analysis of recently released Federal Reserve data, households with annual incomes of $94,535 to $205,335 saw the biggest jump in the percentage with student-loan debt from 2007 to 2010, the latest figures available. That group also saw a sharp climb in the amount of debt owed on average.

Ms. Hofmeister, an insurance broker and financial planner, says she and her husband, an operations manager, combined earn a six-figure income that puts them in the upper-middle class and were surprised by the amount they will have to borrow. She says she feels trapped in financial purgatory, between "people with lower incomes who have a lot of subsidy, and the truly affluent, for whom this isn't a problem."

The Journal's analysis defined upper-middle-income households as those with annual incomes between the 80th and 95th percentiles of all households nationwide. Among this group, 25.6% had student-loan debt in 2010, up from 19.5% in 2007. For all households, the portion with student loan debt rose to 19.1% in 2010 from 15.2% in 2007.

The amount borrowed by upper-middle-income families, meanwhile, has soared. They owed an average of $32,869 in college loans in 2010, up from $26,639 in 2007, after adjusting for inflation, according to the Journal's analysis.

The typical low-income family receives grants and scholarships totaling 36% of the cost, the lender says, while for higher-income families such packages total 21%.

More than three million households now owe at least $50,000 in student loans, up from about 794,000 in 2001 and fewer than 300,000 in 1989, after adjusting for inflation.

Some families are turning to loans because they spent heavily or used extra cash to save for retirement. More than one-third of parents with incomes of $95,000 to $125,000 with a child who entered college in 2011 didn't save or invest for that child's education, according to a survey by education consultants Human Capital Research.

With their finances strained, some higher-earning parents are making their children pick up more of the tab. Among families earning $100,000 or more, students paid 23% of their college costs in 2012 through loans, income and savings, according to Sallie Mae, up from 14% in 2009; the share covered by parents fell to 52% from 61%.

08-08-2012, 09:48 PM

Bernanke Says Student Loans Won’t Cause Crisis

“I don’t think it’s a financial st@bility issue to the same extent that, say, mortgage debt was in the last crisis because most of it is held not by financial institutions but by the federal government,” Bernanke said today at a town hall meeting with teachers at the Fed in Washington." - August 7, 2012

“I expect there will be some failures. … I don’t anticipate any serious problems of that sort among the large internationally active banks.”—Ben Bernanke, Federal Reserve Chairman, February 28, 2008. (In September, Washington Mutual became the largest financial institution in U.S. history to fail. Citigroup needed an even bigger rescue in November.)

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08-08-2012, 09:55 PM

Bernake is prob full of !! lol

08-08-2012, 10:01 PM

Sounds like my family, We upper middle class but it's not like my parents just have money to blow like that. Even with a full tuition scholarship and others I still had to take a student loan.

08-09-2012, 04:25 PM

[pic]

08-09-2012, 05:34 PM

Crazy.

Son sounds dumb but education should be hand down thing just like tech work. :'( i know alot in debt at the moment with fake smiles daily.

08-09-2012, 06:41 PM

Originally Posted by ahenson

Bernanke Says Student Loans Won’t Cause Crisis

“I don’t think it’s a financial st@bility issue to the same extent that, say, mortgage debt was in the last crisis because most of it is held not by financial institutions but by the federal government,” Bernanke said today at a town hall meeting with teachers at the Fed in Washington." - August 7, 2012

“I expect there will be some failures. … I don’t anticipate any serious problems of that sort among the large internationally active banks.”—Ben Bernanke, Federal Reserve Chairman, February 28, 2008. (In September, Washington Mutual became the largest financial institution in U.S. history to fail. Citigroup needed an even bigger rescue in November.)

[pic]

[pic][pic] Do you actully believe this guy? he is the cause for half the problems going on right now with money. Get a grip

06:57 PM

Originally Posted by factorx3

[pic][pic] Do you actully believe this guy? he is the cause for half the problems going on right now with money. Get a grip

Look at this again closely:

“I expect there will be some failures. … I don’t anticipate any serious problems of that sort among the large internationally active banks.”—Ben Bernanke, Federal Reserve Chairman, February 28, 2008. (In September, Washington Mutual became the largest financial institution in U.S. history to fail. Citigroup needed an even bigger rescue in November.)

How could you have read the post you quoted and think I believe this guy? He said that a few months before the worst international banking crises in history.

08-09-2012, 07:08 PM

Yeah...

I was trying to do my own !! for a while but it didn't pan out and I was sick of my parents still covering for me so now I'm back in school.... again....

08-09-2012, 09:11 PM

Lol student loan bubble (almost popped)
housing loan bubble (exploded)
credit card bubble (bout to pop)

and now they are giving niccas who dont make more than 200 a week car loans worth 30k like its nothing... Walk into any dealer ship now and getting a car loan is as easy as signing the paper and driving off with a brand new car.

sooo

automotive loan bubble... (new bubble)

Yup bankers really dont give a fuk.

08-09-2012, 09:32 PM

trying to bring the white man down lol

On a real note loans are a !! make sure your going into the right field my ex just !!ed her life up had a volleyball scholarship for hawaii pacific that covered 50% n lived it up but instead of her premed program she was doin she settled for a bachelor in psychology n some other bs degree but she can only find $15 an hour jobs with 50g's in debt

glad shes gone

08-09-2012, 10:38 PM

Originally Posted by bbrossy313

trying to bring the white man down lol

On a real note loans are a !! make sure your going into the right field my ex just !!ed her life up had a volleyball scholarship for hawaii pacific that covered 50% n lived it up but instead of her premed program she was doin she settled for a bachelor in psychology n some other bs degree but she can only find $15 an hour jobs with 50g's in debt

glad shes gone

[pic]

08-09-2012, 10:51 PM

Upper-middle is in a horrible bracket. Not enough money to pay for college, too much money for financial aid.

08-09-2012, 11:11 PM

Originally Posted by Sub Crazy

Upper-middle is in a horrible bracket. Not enough money to pay for college, too much money for financial aid.

[pic][pic][pic]

Exactly [pic]

This EFC is expecting my parents to throwout 70 k for college, we ain't got it made like that [pic]

08-10-2012, 12:29 AM

Had to claim myself last year on my FAFSA. Parents made too much.

08-10-2012, 07:20 AM

Originally Posted by Sub Crazy

Upper-middle is in a horrible bracket. Not enough money to pay for college, too much money for financial aid.

well its simple then, you aint upper-middle, you just plain ole' run of the mill middle class [pic]

Then again, I don't know what college costs in the US compared to the UK, can you break it down for me? Like tuition, accommodation, living etc.

08-10-2012, 12:18 PM

Originally Posted by Frank Hampton

[pic][pic][pic]

Exactly [pic]

This EFC is expecting my parents to throwout 70 k for college, we ain't got it made like that [pic]

Originally Posted by Andre3stacks

Had to claim myself last year on my FAFSA. Parents made too much.

you should be banking of scholarships that you wrote essays for or some based on your GPA and test scores..You only get pell grant money if you close to poverty line..

08-10-2012, 02:02 PM

Originally Posted by Andrefrbk

Lol student loan bubble (almost popped)
housing loan bubble (exploded)
credit card bubble (bout to pop)

and now they are giving niccas who dont make more than 200 a week car loans worth 30k like its nothing... Walk into any dealer ship now and getting a car loan is as easy as signing the paper and driving off with a brand new car.

sooo

automotive loan bubble... (new bubble)

Yup bankers really dont give a fuk.

heres some knowledge for you.

there are companies that sole purpose is to make money when people default on their loan payments, by buying a type of insurance against the loans. these companies usually are not public, and have the major banks ceo's and cfo's on their boards.

since these companies arent public, they dont have to disclose anything, so the money the banks lose, ultimately ends up in these companies, helping the uber-rich get richer, and leaving the American taxpayers to foot the bill to "bail-out" these massive banks.

08-10-2012, 02:13 PM

Originally Posted by KingoBling

heres some knowledge for you.

there are companies that sole purpose is to make money when people default on their loan payments, by buying a type of insurance against the loans. these companies usually are not public, and have the major banks ceo's and cfo's on their boards.

since these companies arent public, they dont have to disclose anything, so the money the banks lose, ultimately ends up in these companies, helping the uber-rich get richer, and leaving the American taxpayers to foot the bill to "bail-out" these massive banks.

You're talking about companies that use credit default swaps.. mostly hedge funds &[..]et managers.

08-10-2012, 06:12 PM

Originally Posted by Andrefrbk

Lol student loan bubble (almost popped)
housing loan bubble (exploded)
credit card bubble (bout to pop)

and now they are giving niccas who dont make more than 200 a week car loans worth 30k like its nothing... Walk into any dealer ship now and getting a car loan is as easy as signing the paper and driving off with a brand new car.

sooo

automotive loan bubble... (new bubble)

Yup bankers really dont give a fuk.

the american bubble......

[pic]

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