Americans don’t have savings. No, but really. A new study shows that more than half of Americans have less than $1,000 in savings, and more than 20% have no savings at all.
This is hardly surprising given the rising student debt crisis in this country.
The New York Times put it well:
The loan crisis hits hardest at colleges enrolling large numbers of students from low-income backgrounds. These undergraduates have to borrow for college, then often have difficulty finding well-paying jobs after graduation — if they graduate at all.
As a result, they struggle to repay their loans. The colleges with the lowest student-loan repayment rates include many for-profit colleges, but also some public and private nonprofit colleges, including a substantial number of historically black institutions. Even some wealthier, more selective colleges turn out to have a bigger student loan problem than previously realized.
The unfortunate truth is that most students don’t know what they’re getting into when they – or their parents – apply for college loans, only to realize a few years out of college how much this crisis drains your personal finances. We may be able to turn back time for daylight savings today, but we can’t turn it back to erase student debt.