Daily Gains Letter

Student Debt

Student debt is a form of debt taken by a person from a lending institution in order to attend a higher education. Similar to other types of debts, such as credit cards and auto loans, borrowers can default on the loan after a certain period of time if it has not been paid in full.

Many of these loans are offered to students at a lower interest rate. In general, students do not need to start paying back their student loans until the end of a grace period, which is usually four years after taking out the student loan.

What is troubling with the vast majority (90%) of student debt is that it is guaranteed by the federal government. If a student defaults on their debt, the government has to absorb the losses. If the default rate increases, this additional liability can have a significant impact on U.S. national debt.

Student Debt on Course to Sink America’s Economy; Here’s How to Profit

How to Protect Your Portfolio Coming Domino Effect Student DebtIn April, the unemployment rate dropped to 6.3%—its lowest level since 2008. While Wall Street and Capitol Hill might be giving each other high-fives, there is still plenty left to lament. At 12.3%, the U.S. underemployment rate is still eye-wateringly high. (Source: “Alternative measures of labor underutilization,” Bureau of Labor Statistics web site, May 2, 2014.) Sure, it’s down from 13.9% in April 2013, but it’s still at an unacceptable level. And it’s not exactly an encouraging statistic for those entering, already in, or recently graduated from a post-secondary school—or those still struggling to pay off t ... Read More

What’s Handicapping First-Time Homebuyers?

First-Time HomebuyersFor months and months now we’ve been pointing to seemingly obvious economic data to prove that the U.S. housing market is in trouble because of the weak U.S. economy. Those in the “know”—economists and the real estate board—have been waxing eloquence on how the weather is the main culprit behind the disappointing U.S. housing market numbers. The National Association of Realtors (NAR) said existing-home sales in December were adversely affected by bad weather in many areas. Sales of existing homes in January were down 5.1%, reaching their lowest levels in 18 months. At the time, the NAR echoed i ... Read More