Student loans will probably be the cause of the next crisis.
When the boomer generation graduated from college, they became lawyers and doctors with an abundant future. When millennials graduate, they can look forward to becoming debtors still living in the parental abode. Student loans are shackling many of today’s graduates to decades in debt.
Imagine graduating with a $40,000 student loan debt, to be paid off at a 4 percent interest rate in 15 years. That would take $295.88 in monthly loan payments for a total of $53,257.53. If the same student were to graduate without debt and put that monthly payment in a portfolio yielding 6 percent annually, the youngster would have assets of $86,477.68 at the end of those same 15 years...