Greek debt crisis explained

The ongoing debt crisis in Greece continues to spur unrest, move markets and threaten the very fabric that connects the eurozone. Exactly how much effect a Greek default — and the domino effect in lending costs it would have throughout Europe — would have on the U.S. business world remains unclear.But a good rundown from CNN Money offers a list of the three biggest risks Greek default presents for the United States: (1) U.S. bank exposure to sovereign debt, (2) a pullback in U.S. exports, and (3) U.S. business slow down.To me, the last one seems the most threatening. Only now is the U.S. economy beginning to make any headway on replacing the jobs lost after the 2008 meltdown — and even this “recovery” remains mild, at best.Here is how CNN breaks down that risk.Many products sold by U.S. companies in Europe are made in Europe.And losses there are already taking a bite out of U.S. multinational firms, from automakers General … [Read more...] about The Greatest Risks of the Greek Debt Crisis to the U.S. Economy

So whether they are actively recruiting these low-income students for reasons of open-the-door altruism or keep-the-lights-on capitalism — or, more likely, some combination of the two — there has been a huge, largely hidden byproduct of this dramatic increase in access: These students are often being loaded up with staggering debt that is completely out of whack with the earnings boost they’ll likely get from a degree at a nonselective or less selective college. Already, average student loan debt is higher in Boston than any other metro area in the country, 44 percent above the national average, according to Credit Karma. But  more troubling, many of these low-income students — and, at some colleges, most of them — are not graduating. That means these non-completers are leaving campus saddled with lots of debt but none of the salary gains that traditionally come with a bachelor’s degree. RELATED STORY: Poor at an Ivy League school Dean College … [Read more...] about The college debt crisis is even worse than you think

Breaking News Emails Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings. SUBSCRIBE March 30, 2019, 11:51 AM GMT  / Updated  March 30, 2019, 5:03 PM GMT By Dareh Gregorian The 2020 Democratic candidates are mostly on the same page — or at least the same bill — when it comes to tackling the student loan debt crisis. Sens. Elizabeth Warren, Cory Booker, Kamala Harris, Kirsten Gillibrand and Rep. Tulsi Gabbard all endorsed Sen. Bernie Sanders' College for All Act in 2017. The $47 billion plan would eliminate undergraduate tuition and fees at public colleges and universities. It would also lower interest rates on student loans, and allow those carrying existing debt to refinance their loans. Harris, Booker, Warren and Gillibrand have since signed on to Sen. Brian Schatz's Debt-Free College Act, which also addresses costs beyond tuition, such as books and living expenses. The Hawaiian Democrat's more … [Read more...] about Growing student debt crisis: Candidates say cancel it, free college, refinance

There’s no doubt that college is expensive. Tuition and fees for a four-year private college averaged $35,830 in 2018-19; at four-year in-state public colleges, it was $10,230, according to the College Board. And that doesn’t count room and board or other expenses. Few families have the cash to cover it, and that’s where borrowed money often comes in. On average, loans cover 24% of the tab when savings, financial aid and scholarships fall short, according to Sallie Mae’s 11th annual “How America Pays for College” report. As a result, student debt has reached record proportions, with $1.6 trillion in loans outstanding. And that burden is not just shared by students. Increasingly, parents are borrowing to make up the difference. While the annual limit on federal student loans is $5,500 to $7,500 depending on your year in school, parents can take out up to the maximum of the cost of attendance (minus federal student aid or loans offered directly to the … [Read more...] about The Latest Victims of the Student Debt Crisis — Parents

More than 2,500 people in Mansfield and Ashfield have been moved on to Universal Credit, despite concerns it could push claimants further into debt. The Joseph Rowntree Foundation says the new benefits system could represent a positive change, but in its current form risks pushing people on low incomes into financial trouble. Department for Work and Pension figures show that 1,624 benefit claimants in Mansfield and 1,021 in Ashfield had been moved onto Universal Credit by the middle of last month.The Government plans to fully implement its flagship welfare system by the end of 2023 – it was originally due to be up and running by April 2017.Under the scheme, six different types of benefits are being rolled into one monthly payment, including jobseekers' allowance and working tax credit.Of those who had been moved to the scheme last month, 34 per cent in Mansfield and 37 per cent in Ashfield were in employment.Across the country, more than 1.5 million people have so far been … [Read more...] about Charity fears debt crisis as thousands are moved on to Universal Credit