I know why Millenials can't afford houses and pay off their student loans..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most millenials ARE living with roommates, or living at home with their parents to save money.

My loans will be forgiven in 5 years. No I did not go to an overpriced university. I went to an inexpensive law school and graduated with $70k in loans that I couldn't pay off because the job was shit (thanks to those who crashed the economy while I was in college buying homes they couldn't afford or didn't have the income to purchase thanks to no accountability!), and the interest rates were high so my debt has doubled while I've been working a low paying job. Yes I will use the public program that is available so that my loans go away as soon as I qualify. The government is what caused the problem, and the government is going to fix it.

BTW, I'm a single mom (and DV survivor), and I live in a neighborhood of DC that has not gentrified, in my own modest home that I purchased using the low income tax abatement and a down payment assistance program. I'm going to use the funds available to me to make my life better and more stable. Not only that, I'm going to artificially depress my AGI until my loans are discharged (by contributing a higher than average amount to my 401k) so that my loans payments stay low. I figure my 70 year old self will thank me in about 35 years.

I figure if this country elected a person who is "smart" enough to figure out the loopholes so they don't have to pay any taxes, I can play games with my money too.

No.

You caused this problem, not the government.

You are the one who chose to take out these loans. You are the one who picked your major. You are the one who picked your school.

Why did you take out $75K of loans for college? Why didn't you do two years at NOVA community college? Why didn't you pick out a less expensive college or a marketable degree like accounting or a stable, in demand degree like teaching?

These are all choices you made. Why should we the taxpayers pay off your loans that you freely took out on your own?

Glad someone said what I was thinking.....and I find it hard to believe that someone managed to get out school loan debt by waiting several years. The government didn't do anything wrong, someone just made bad choices. I also bet that debt is effecting their credit, although if the credit report says "deferred", then it may not be a big deal. I also don't buy that the interest rate doubled. I have school loan debt (currently going), and my interest rate hasn't changed once.

I didn't do 2 years at NOVA because I'm not from around here (moved here for work because I found a job here - after LAW SCHOOL) I had zero debt after undergrad, because my boomer parents saved and paid for my state school education. After law school I was supposed to be able to find a good job that would pay back the loans. That didn't happen because a bunch of idiots allowed the housing market to crash and take the economy with it. I got pregnant during school and (GASP chose not to have an abortion) and became a single mom. I'm taking responsibility for my actions - and using all of the avenues available to me to do it. (I was also on food stamps and medicaid and WIC while I was in school and immediately after, in case you really want to get mad about how much I abused your tax payer dollars)

To the next person, the interest rate didn't double, the balance on the loan did. I can't pay the interest on the loan, so the debt keeps increasing. My income was so low that I can barely make payments. What I do pay is always on time however, and qualifies for PSLF. So I'll be out of student debt in 5 years on your tax payer dollars. While raising a child, and owning my own home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
How is that any of your business? I love the gall of all the SAHMs on here who fuss about school pyramids and want their children to go to the best schools to the point of putting themselves in severe mortgage debt, but someone else decides to go a college/university and increase their education - its all you should have gone to a CC!!

Cheers! Way to bring a millenial conversation back around to the old sawhorse -- WOHM vs. SAHM.

Is there any debate that tired old trope cannot be introduced to? I'm sure you could find a way to work it into a convo on Syria.

LOL. That did come out of nowhere, didn't it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I graduated from college in the early 90s and no one was buying houses right out of college.

Everyone either had roommates, or was married. Some people stillmlived with their parents.

The homes were not single family homes in hip expensive neighborhoods. They were suburban apartments or town houses for those who wanted a little nicer homes, or dives in the city.

I don't know why millenials aren't doing the same, ie getting roommates and living in less than ideal starter apartments just like everyone else. I think a lot of their housing issues are because they have a warped hgtv idea of what their first place should look like, and think they deserve more so they just decide to live with mom and dad instead so they have fun money and nice things.

I have no idea why they are too irresponsible topay off their college loans.

They might be educated, but they failed at basic consumer math when they chose to take out these exceptionally expensive loans for degrees that aren't marketable and from overpriced expensive universities.

They should not get their debt forgiven. That is unfair to everyon who met their debt obligation or who made better, more responsible choices.

Most millenials ARE living with roommates, or living at home with their parents to save money.

My loans will be forgiven in 5 years. No I did not go to an overpriced university. I went to an inexpensive law school and graduated with $70k in loans that I couldn't pay off because the job was shit (thanks to those who crashed the economy while I was in college buying homes they couldn't afford or didn't have the income to purchase thanks to no accountability!), and the interest rates were high so my debt has doubled while I've been working a low paying job. Yes I will use the public program that is available so that my loans go away as soon as I qualify. The government is what caused the problem, and the government is going to fix it.

BTW, I'm a single mom (and DV survivor), and I live in a neighborhood of DC that has not gentrified, in my own modest home that I purchased using the low income tax abatement and a down payment assistance program. I'm going to use the funds available to me to make my life better and more stable. Not only that, I'm going to artificially depress my AGI until my loans are discharged (by contributing a higher than average amount to my 401k) so that my loans payments stay low. I figure my 70 year old self will thank me in about 35 years.

I figure if this country elected a person who is "smart" enough to figure out the loopholes so they don't have to pay any taxes, I can play games with my money too.

No.

You caused this problem, not the government.

You are the one who chose to take out these loans. You are the one who picked your major. You are the one who picked your school.

Why did you take out $75K of loans for college? Why didn't you do two years at NOVA community college? Why didn't you pick out a less expensive college or a marketable degree like accounting or a stable, in demand degree like teaching?

These are all choices you made. Why should we the taxpayers pay off your loans that you freely took out on your own?

Glad someone said what I was thinking.....and I find it hard to believe that someone managed to get out school loan debt by waiting several years. The government didn't do anything wrong, someone just made bad choices. I also bet that debt is effecting their credit, although if the credit report says "deferred", then it may not be a big deal. I also don't buy that the interest rate doubled. I have school loan debt (currently going), and my interest rate hasn't changed once.

I didn't do 2 years at NOVA because I'm not from around here (moved here for work because I found a job here - after LAW SCHOOL) I had zero debt after undergrad, because my boomer parents saved and paid for my state school education. After law school I was supposed to be able to find a good job that would pay back the loans. That didn't happen because a bunch of idiots allowed the housing market to crash and take the economy with it. I got pregnant during school and (GASP chose not to have an abortion) and became a single mom. I'm taking responsibility for my actions - and using all of the avenues available to me to do it. (I was also on food stamps and medicaid and WIC while I was in school and immediately after, in case you really want to get mad about how much I abused your tax payer dollars)

To the next person, the interest rate didn't double, the balance on the loan did. I can't pay the interest on the loan, so the debt keeps increasing. My income was so low that I can barely make payments. What I do pay is always on time however, and qualifies for PSLF. So I'll be out of student debt in 5 years on your tax payer dollars. While raising a child, and owning my own home.

I thought you could negotiate school loan payments.

I find it hard to believe that you are blaming the economy for job issues. You couldn't find an entry level job (paralegal for instance) at any law firm?

Also, community colleges exist all over the United States. Someone was using NVCC as an example because most people on this site are from the DC area.

I googled PSLF and found this: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
So, you made 10 years of payments first?

[Anonymous]

It's got to be discouraging for a lot of the kids in that generation to do everything they were told to do (study hard, pick a major you love, graduate from college) and end up working at starbucks because the jobs just aren't there. I'm an x-er who graduated in a recession and had a hard time finding a "real job" - and then had to work retail for years to supplement the tiny salary. But I did end up with a real job in my field at 22, and that's not a guarantee these days.

yes, some of them seem pretty spoiled. I think the danger of letting kids move back in with you is that they get accustomed to a certain way of life they can't afford on their own. I think so many people in my generation lived in sh*tty apartments in our 20's and ate ramen and mac & cheese for years because we had to. Then these kids are turning up their noses at rentals because the appliances aren't stainless steel, and they're eating all organic and going to studio yoga classes. It can be hard for someone my age to relate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

I didn't do 2 years at NOVA because I'm not from around here (moved here for work because I found a job here - after LAW SCHOOL) I had zero debt after undergrad, because my boomer parents saved and paid for my state school education. After law school I was supposed to be able to find a good job that would pay back the loans. That didn't happen because a bunch of idiots allowed the housing market to crash and take the economy with it. I got pregnant during school and (GASP chose not to have an abortion) and became a single mom. I'm taking responsibility for my actions - and using all of the avenues available to me to do it. (I was also on food stamps and medicaid and WIC while I was in school and immediately after, in case you really want to get mad about how much I abused your tax payer dollars)

To the next person, the interest rate didn't double, the balance on the loan did. I can't pay the interest on the loan, so the debt keeps increasing. My income was so low that I can barely make payments. What I do pay is always on time however, and qualifies for PSLF. So I'll be out of student debt in 5 years on your tax payer dollars. While raising a child, and owning my own home.

I thought you could negotiate school loan payments.

I find it hard to believe that you are blaming the economy for job issues. You couldn't find an entry level job (paralegal for instance) at any law firm?

Also, community colleges exist all over the United States. Someone was using NVCC as an example because most people on this site are from the DC area.

I googled PSLF and found this: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
So, you made 10 years of payments first?

(I had to cut the quote string, it was getting unwieldy) Law firms where I went to school generally wouldn't hire lawyers as paralegals - we have slightly different skill sets, and they know lawyers won't stay on for long. And I applied for well over 100 jobs (of all kinds) before I got hired to do research here in the DC area. I did some document review while applying for jobs, but that was unstable and unpredictable, and didn't develop a real skill set that I could use to get a better job - not to mention it didn't pay very well. (I also attended a community college for a year during high school to get some gen eds out of the way, but again, my parents paid for my undergrad degree)

I have 5 more years of payments to make to qualify for PSLF, I've made 5 years of qualifying payments already. I will stay in public service until then, and then will make a decision on what to do next.

[Anonymous]

Millenial here:

The ones I know who can't afford to pay off their student loans either took out too much money for non-necessary things when they were in college and/or have jobs that really don't afford for them to pay other than the min pymt.

This applies to not being able to afford a house either.

I can afford a house but don't want one here in the city I'm currently residing in.

[Anonymous]

Anonymous wrote:It's got to be discouraging for a lot of the kids in that generation to do everything they were told to do (study hard, pick a major you love, graduate from college) and end up working at starbucks because the jobs just aren't there. I'm an x-er who graduated in a recession and had a hard time finding a "real job" - and then had to work retail for years to supplement the tiny salary. But I did end up with a real job in my field at 22, and that's not a guarantee these days.

yes, some of them seem pretty spoiled. I think the danger of letting kids move back in with you is that they get accustomed to a certain way of life they can't afford on their own. I think so many people in my generation lived in sh*tty apartments in our 20's and ate ramen and mac & cheese for years because we had to. Then these kids are turning up their noses at rentals because the appliances aren't stainless steel, and they're eating all organic and going to studio yoga classes. It can be hard for someone my age to relate.

I think this is a big part of the problem. In order to live the life these kids have grown accustomed to due to their parents' incomes -- McMansions, all organic everything, studio yoga, no Ramen ever -- they need to pick majors that lead to professions where there is money. IMO there are 3-4 "sure shot" -- as sure as anything can be -- professions where there is money. Parents should be encouraging their millennial to pick one of those and shelve the ideas of studying 16th century French literature bc it is their life's passion.

[Anonymous]

Remember when you took out that HELOC? When you didn't actually save for your kids' education but instead thought of your house as an ATM?
As crazy as you may think it, the Millenials did NOT cause the housing crash. They did not dissolve your retirement funds. They were too young to buy when all that went down.
You may be bitter and have a few more years of wear, but you mid-forty somethings and up are not the geniuses you think you are.

[Anonymous]

Sigh. There are so many factors at play. A big one is really that wealth is being hoarded at the top ages. Years ago, your parents died and left you the farm/inheritance when you were in your 30's. Also, everything costs more now. Things like cell phones and internet are now necessities and you pay monthly for them.

But yeah, lots of millenials are overspending. The trips, $100 plus weekly dinners, manicures, fancy clothes- they all add up.

-Millenial who has her shit together. Married, owns a house and no debt.

[Anonymous]

Anonymous wrote:Millenial here - why do you think I left DC?

I spent 3 years outside of DMV area. Saved a buttload of money now moving back with my own home. I dread the allure of pricey 'must-haves' in DC. A SoulCycle class is $34 per an hour! Eating out or food delivery is $10 per meal. Whole Foods (which is on my block) is 2x the cost of Giant which is about 7 blocks away.

It's not easy shopping or staying middle class in DC. It's not just keeping up with the joneses for me, its about investing in myself but also having limits. It's hard.

MAN X10000

Alot of my friends (late 20s) own Chanel bags, luxury cars, and new condos....im just trying to pay off my loans lol

[Anonymous]

Millenial family here with SAHP, two kids and plans for 1-2 more, paid off house, no debt, two cars, lots of degrees, etc.

...from our POV, the fundamental issue is how society is structured. Inequality and predation abound...predatory healthcare, predatory education, predatory housing, income inequality everywhere, consumerism brainwashing you at every turn...it's hard to make the right choices all the time, and you need a lot of luck to not step on any of the mines in the field.

[Anonymous]

Anonymous wrote:I am an older Millennial. When I started working post law school, I received much unsolicited personal advice re finances ("I could save $2 a day by not buying a tall Pike SB coffee.").

I married well. My husband pulled another 7 figures this year. One cup of SB tall coffee a day is worth a pair of shoes to me now, and I have enough shoes.

I should be providing unwelcome financial advice to those who use to degrade me, but I won't. Not worth my time or energy.

That's your solution?

I hate this phrase, but that truly makes me throw up a little in my mouth.

[Anonymous]

I'm an older millenial (34) and DH is 31. We lived cheaply with roommates for years in a very divey transitional neighborhood. We buckled down and paid of his high interest law school loans (we had no ugrad loans thankfully).

We bought our first house 6 years ago for just under 300k in an outer burb. We have a mortgage payment we can afford and our house is too small for our family of now 3. We had no help from parents for a downpayment, though many of my 40something Gen X friends had downpayment help, or were able to buy homes at a time that prices were more in line with income. So they are in a tony school district now and we are not.

As a millennial who has done everything right (saved, paid loans, works hard), I find it really rude that older people who truly did not have the same unfortunate economy as they were coming of age are so callous about how millennials live. Baby boomers fucked us all, Gen exers haven't helped either and now we are stuck with a baby boomer run government with Gen X chomping at the bit to take the reins and we will just be left here, hoping like hell that the retirement savings we are scrimping to put away are still there in 50 years. Because we will all surely be working until we are 80. Just remember that when you are retiring at 65 and shitting on us for wanting a work life balance. We know we have 20 plus more years of the working grind than you will have.

[Anonymous]

Anonymous wrote:Old millennial here -- and OP I tend to agree with you. Of course it isn't one coffee or luxury knife (not that I know what that is) that'll push anyone over the edge, but there is a SERIOUS desire for luxury goods in my generation whether the salary is there or not and a desperation to "follow their passions."

I have a bunch of friends in their upper 20s living with their parents - fine, to each their own. But in my mind, I've always thought that would mean they'd be making double/triple payments on student debt + 18k into the 401k + additional cash savings that can be used for a down payment etc., bc they have no housing or food costs. And across the board each of them has told me -- oh nooo, that's really hard to do. They all work jobs in the 40-60k range -- often in start ups or non profits bc they want to follow their "passion" and can't imagine "selling out" to a Fortune 500 -- and spend a TON of money on coffee, eating out, technology, and constant travel.

My favorite though is a cousin and her DH who are ~32. Wife switches jobs every 18 months and is now in some entry level insurance claims paying job in a major city. Her DH is STILL in school -- studying to be a chiropractor and is taking on decent debt for an endeavor that may or may not lead to sizeable income. And yet they take an international trip EVERY 6 months -- once they went to Asia on the cheap; the rest of the time they are in western Europe and no they aren't backpacking or staying in hostels. I don't understand the constant need to "do what makes them happy." For course they don't understand my constant need to invest in decidedly non-passionate things like index funds and tell me I'm a "sell out."

I don't get complaints like this. If they're happy, why do you care? Maybe they value traveling more than saving for a day they might not get to experience. They are free to make that choice. Again, if it doesn't impact you, why do you care?

[Anonymous]

Anonymous wrote:Millenial family here with SAHP, two kids and plans for 1-2 more, paid off house, no debt, two cars, lots of degrees, etc.

...from our POV, the fundamental issue is how society is structured. Inequality and predation abound...predatory healthcare, predatory education, predatory housing, income inequality everywhere, consumerism brainwashing you at every turn...it's hard to make the right choices all the time, and you need a lot of luck to not step on any of the mines in the field.

Nothing has changed from the old saying that a fool and his money are soon parted. What has changed is the institutionalization of the predation. It seems there is no shame or embarrassment anymore.

A couple years ago the banks were getting beat up (rightly) for the way they hit consumers with every imaginable fee. One thing they did was structure your transactions in such a way as to maximize your overdraft penalties. Someone sat in a conference room somewhere and created that policy, and no one said 'this is wrong' or 'we shouldn't treat people that way'.

Or the way Fannie and Freddie threw gas on the fire of the liar loans, reverse amortization, etc. Someone in an office here in DC said 'We need to be in that market' and basically mainstreamed what was until then a very limited market.