It’s a bureaucratic bungling that just might wipe out five billion dollars in student loans. As the government and the financial and educational sectors are coming to grips with the crisis and trying to find a solution to it, one question that is coming up is: what will this mean for the millennials who are new to the workforce? To millennials who have more debts to pay than their Gen-X and baby boomer parents, bosses, and senior colleagues?
The answer: they might be able to enjoy a more financially stable and secure life. They can probably launch the businesses they have long dreamed of. And finally, they can get their own taste of the American dream and own their own homes.
According to The Business Insider, at the heart of this maelstrom is the National Collegiate Student Loans Trust, which is an association composed of bankers, investors, and credit lenders. The National Collegiate holds about 800,000 of student loan accounts for a total of $12 billion. It is known for its diligence and persistence in taking to court students-turned-professionals who default on their loans.
The report says, however, that the paperwork that will support about $5 billion in loans and their collections is far from coherent, prepared, or available. Without the paperwork, the National Collegiate cannot collect on the loans. Failure to collect can mean that those students will be freed from their financial obligations.
It is a predicament that these former students, many of whom are working in their first or second jobs, would welcome. In one interview conducted by Fox Business, a huge population composed of 18-29-year-old millennials actually wants the government to forgive their debts.
Many of them did pay more for their education than the previous generations and are now feeling the burden. Easing up on this burden would empower them to pursue their entrepreneurial dreams – or at the very least, increase their financial ability.
Right now, the weight of their student loans is preventing millennials from the ages of 28-30 to secure a mortgage for their own homes. According to the Federal Reserve Bank of New York, this demographic experienced an 11 to 35 percent decline in purchasing their own dwelling spaces from 2007-2015. Any significant relief that will reduce their financial loans might finally grant them the opportunity and means to start paying up for their own accommodations.
But Fox Business maintains that sudden debt relief, thanks to the government’s generosity, is unlikely. The total student loan worth in the U.S. is $1.3 trillion—wiping out a third of that will cost the government $330 billion, which it plainly cannot afford.
In the meantime, though, National Collegiate may not feel as equally generous. But unless it finds and secures its own paper trail, it just might fulfill the dreams of debt-saddled millennials—reluctantly and at its own enormous risk.
Angola might devalue the kwanza, as the country’s economy is threatened
Angola’s central bank governor said that the national currency, the kwanza, registered a 10% depreciation, from January to the current...
Real estate is at risk because of the exogenous crisis caused by COVID-19
Participatory real estate investment has not escaped the economic and health crisis. However, the consequences will not be the same...
The coronavirus has caused a rise in cannabis prices
According to a report published last year by the National Drug Plan, one in ten Spanish adults use hashish or...
Bitcoin hash rate is slumping due to uncertainty
While the Bitcoin price started to slowly increase again, the BTC hash rate is plummeting. According to blockchain.com, the maximum...
Italian biotech companies entered the race to find a vaccine against COVID-19
Several Italian biotech companies, such as Irbim, ReiThera and Takis, have entered the international race to develop a vaccine that...
- Featured7 days ago
Fintech is the bet of bankarization in the digital era
- Biotech5 days ago
Hemarina offers its oxygen carrier molecule to fight the COVID-19 pandemic
- Crypto6 days ago
Could the sale of $11.3 million XRP by MoneyGram affect the Ripple Hodler?
- Business6 days ago
The COVID-19 pandemic is a catastrophe for the world’s economy