Will debt-but-no-degree shatter the American dream?

The most talked about statistic in the student loan story is the average student debt of $30,000. But that may not be the statistic that requires the most attention. Aggregate student debt in the United States (IJH) (VTV) has certainly ballooned. It has reached a level that has caught the attention of regulators as well as policymakers. However, if you delve into the origin of the student loan concern, you’ll see why a small-ticket loan of $5,000 could be more harmful to the health of the US economy (SPY) (IWM) (QQQ) than a $100,000 loan.

US Student Debt: A $5,000 Debt Needs More Attention Than $100,000

The smaller the ticket size, the bigger the risk

There’s a one-line answer to the small-ticket issue. Small-ticket loans are mainly held by students who are dropouts or never enrolled in college. Defaults on these financial sector (XLF) (VFH) loans are almost inevitable.

Statistics support this. Loans of $10,000 account for about two-thirds of all student loan defaults. Students with $5,000 in debt are among the ones that never enrolled in college. How does anyone expect this segment of borrowers to repay their debts?

While the media are busy focusing on the larger scheme of things, the heart of the student debt crisis seems to be in smaller loans.

Let’s move on to see who might see the effects of the student debt crisis more.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.

172.31.16.229