Millennials Mired In Wealth Gap As Older Americans Gain: Economy

Read More Homeownership rates for 35 to 44 year olds dropped 6.3 percentage points to 60.9 percent as of the fourth quarter 2013 from the end of 2007, Census data show. Close Close Open Photographer: David Paul Morris/Bloomberg Homeownership rates for 35 to 44 year olds dropped 6.3 percentage points to 60.9 percent as of the fourth quarter 2013 from the end of 2007, Census data show. These changes going on with individual balance sheets could have impacts on the whole economy, said William Emmons , an economist at the St. Louis Fed who co-authored the study published in February with Bryan Noeth. Maybe this is one of the reasons http://www.youtube.com/watch?v=VLP8fFv1AkM that its been so hard to understand this weak recovery. Not enough people are looking at these. More Exposed Young families were more exposed to the real-estate slump because homes represented a larger share of their wealth before the crisis, much of it financed with debt, according to Emmons and Noeth.

Student Debt Adds to Wealth Gap

<img src='http://www.vnews.com/csp/mediapool/sites/dt.common.streams.StreamServer.cls?STREAMOID=DItNVCMQ4mO4kBxEq95ZYs$daE2N3K4ZzOUsqbU5sYsBEHQEzHwyS1wUaFA4puEZWCsjLu883Ygn4B49Lvm9bPe2QeMKQdVeZmXF$9l$4uCZ8QDXhaHEp3rvzXRJFdy0KqPHLoMevcTLo3h8xh70Y6N_U_CryOsw6FTOdKL_jpQ-&CONTENTTYPE=image/jpeg&#039; width='200px' alt='This March 26, 2014 photo shows Nida Degesys, National President of the American Medical Student Association, at her office in Sterling, Va. Degesys graduated in May 2013 from Northeast Ohio Medical University http://www.prweb.com/releases/the-elevation-group/aspire-magazine-feature/prweb10433128.htm with about $180,000 in loans. The amount has already swelled with interest to about $220,000. Yet, as costly as medical school was, Degesys sees it as an investment in herself and her career, one she thinks will pay off with a higher earning potential. (AP Photo/Evan Vucci)’ style=’float:left;padding:5px’ />

The increases have been driven in part by rising tuition, resulting from reduced state funding and costlier campus facilities and amenities. Compounding the problem has been a trend toward merit-based, rather than need-based, grants as institutions seek to attract the higher-achieving students who will boost their standings. “Because there’s a strong correlation in this country between things like SAT scores or ACT scores and wealth or income, the (grant) money ends up going disproportionately to students from wealthier families” who tend to perform better on those tests, said Donald Heller, dean of the Michigan State University College of Education. Those factors, along with stagnating family incomes and declining savings, have made student loans a much bigger part of funding higher education, Elliott said. Sallie Mae CEO: Some manage student loan debt successfully Sallie Mae CEO Jack Remondi discusses mounting student debt.

$1 trillion student loan debt widens US wealth gap

Nida Degesys, National President of the American Medical Student Association, poses for photos in her office in Sterling, Va.

They believe theyll eventually climb from debt and begin using their earnings to build assets. But, like the roughly 37 million others in the U.S. saddled with $1 trillion in student debt, they may never catch up with wealthy peers who began life after college free from the burden. The disparity, experts say, is contributing to the widening of the gap between the rich and everyone else in the country.

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