Millennials face financial frustration with student loan pause

When I first heard about President Joe Biden Student loan debt relief plan For millions of federal borrowers, Travis Rapoza is cautiously optimistic.

A Pell Grant Recipient, Rapoza qualify for $20,000 loan forgiveness according to the plan Biden announced in August. Along with the money he’s saved from living with his parents over the past four years, he’ll eventually be debt-free and be able to move out on his own.

Ultimately, Rapoza thinks, his generation has been heard by leaders in Washington DC. Finally, something has been done to address the anxiety and financial difficulties faced by generations of millennials.

He should know better, he said Luck. The excitement of many federal borrowers was short-lived as Biden’s pardon plan rolled out Paused due to various legal challenges from conservative and liberal groups. Its fate now rests with the Supreme Court of the United States.

“I was ecstatic, who wouldn’t?” Rapoza, 31, talks about when he learned of Biden’s plan to clear his debt. “But why do we get such a good thing? I don’t think we’re expecting anything.”

Low expectations come with the territory when you’re a millennial. This generation, which includes those born between 1981 and 1996, has faced one financial hardship after another. They were heavily affected by not one but two global crises— the Great Recession and the COVID-19 pandemic — known as “Black Swans” events that typically occur once in a generation. These events have had a major impact on their financial lives: They are buying a house later (if they can afford it), pushing back on marriage and on the fence about children. They are working more than their parents while being told over and over that they lazy and selfish.

Many people, like Rapoza, feel like they’ve been forced into expensive universities by their parents, who tell them that a college education is the ticket to a better life. But while they are are more educated than their parents’ generationThat education comes with a significantly higher student loan debt burden, due to soaring college costs.

“The possibility of student loan relief hangs in front of them, only to potentially be suspended,” said Jonathan McCollum, president of federal government relations at the New York law firm Davidoff Hutcher & Citron. robbed, is the latest in a long string of problems.” .

The average salary of college graduates is still higher than that of non-graduates and non-graduates, but they have not keeping up with the cost of living. In addition to record housing prices, many young adults today owe hundreds (if not thousands) a month on their student loans.

“What’s really frustrating is when I hear baby boomers say, ‘I paid off my student loans, why can’t you?’ André Perry, a senior fellow at the Brookings Institution, said: “Not taking into account the fact that the cost of college has more than tripled in 30 years. “It’s frustrating when you have a group of individuals doing everything they’re required to do to get a degree so they can support a knowledge economy, but have a larger share of the costs than that. with their predecessors.”

Too good to be true

When announced, Biden’s student loan relief plan offered a glimmer of hope for those feeling stuck in debt. Instead, millennials can add it to the list of promises that have turned into disappointments, big and small, from affordable housing to trying to score points. Taylor Swift concert tickets.

Get housing. As federal student loan payments are halted during the COVID-19 pandemic, some millennials are finally financially stable enough to buy a home, despite record-high home prices. nationwide. Mortgage rates are at record lows, giving first-time homebuyers a short window of time when their money can go further. With a little extra savings each month, millennials have the opportunity to dream about how they would spend if their debt wasn’t a factor. Rapoza and other young people say that if loan forgiveness proceeds, they will finally be able to save for a house.

Then mortgage rates skyrocketed this year, along with housing prices continuing to record highs, prompting many first-time homebuyers to close their doors once again.

Millennials can’t even rest in their spare time. When they have enough disposable income to spend on fun things like concert tickets, they still run into walls erected by previous generations. Earlier this month, millions of people tried to log into Ticketmaster to secure a spot for Taylor Swift’s big US tour—and millions failed. It would have been an easier process had Ticketmaster not been owned by LiveNation, an amalgamation that many Democrats, including quintessential millennial politician Congresswoman Alexandria Ocasio-Cortez, is now called monopoly? Unpredictable, but this experience is symbolic that millennials are constantly left in poverty: steeped in debt, low wages, high costs of living, and several policies for boom generation has prevented them from being successful and happy.

Ja’Net Adams, 41, who has paid off $50,000 in student debt and is now helping others manage their personal finances, said: . “It’s all tied together for thousands of years and affects their entire financial picture.”

Each set returns to the next compound. Millennials took out student loans to attend a good school in hopes of getting a good job. But debt keeps many people from buying homes, saving, or starting to invest. With all of that, they have less affluent than baby boomers of the same age.

Before long, they will have to care for their elderly parents in bulk, adding to the financial strain. The problems are amplified for Blacks and other non-white millennials.

“It doesn’t seem like we want millennials to have a piece of the American Dream,” Perry said.

So Generation Y can use victory. But Rapoza said it seems unlikely victory will come in the form of student loan forgiveness, as Biden is asking the US Supreme Court — which currently consists of six conservative and three liberal justices — judgment on the legitimacy of the program.

“If you’re going to play baseball and it’s raining, I wouldn’t expect a good game,” he said.

However, both Rapoza and Perry say the government needs to do something to help its citizens. And saying “don’t go to college” is not a solution; They say America needs an educated workforce to be competitive.

Rather than just erecting roadblocks to block student loan forgiveness and other Democratic policies, they want to see Republicans come up with some solution to their college education cost crisis. America. Rapoza doesn’t give up hope that something can be done to help his generation and the future.

“We sold this legend and it didn’t work out and we were left alone,” said Rapoza. “Can someone give us a hand, please? Can’t you see how badly we’ve been beaten?”

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