David Lerner Associates News

Student Debt Strangling Success

Core Facts

Monday, April 9, 2018

The future of a country is the youth of that country. It stands to reason that the next generation will be in charge of things eventually. The younger folks that are entering adulthood need to be one step ahead if they want to succeed in today’s modern America. To do this, many are getting themselves into large amounts of debt to get educated in the hope that they will have a job or career after they have studied for their chosen profession. This is putting our younger folks at financial risk.

According to the Federal Reserve, student loan debt has now completely surpassed credit card debt and has exceeded $1.4 trillion -- a sky high sum that may be spiraling out of control. Modern college education costs more today than ever before. In fact, it has jumped by 1,125% since 1978. By contrast, medical expenses have risen by 601%.

The fact that more and more of today’s young adults are getting trapped in debt means that they are not in as strong a financial position as someone without such large debt. It, in turn, means that they have to repay their debt over a period of time, and this leads to a lack of disposable income and even more stressful, a lack of savings. A study by the American Institute of CPAs showed that 80% of Americans have made some sort of financial sacrifice in order to make student loan payments, and 50% said that they were delaying saving for retirement while they paid off their loans.

Students will be paying off their loans for years to come, and it is putting their retirement at risk. They will have to work longer and harder than ever, and this might be putting a huge strain on America's future, her youth.


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

xpayer should seek independent advice from a tax professional based on his or her individual circumstances.

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Author: Sally Falkow

Categories: David Lerner Associates News


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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