According to the Brookings Institution, student debt is the only kind of debt that continued to grow after the recession. There are currently $1.4 trillion in outstanding student loans. National Association of Realtors estimates that educational borrowing could delay home ownership by 7 years. The Brookings study included some scary findings on race and wealth. Black college graduates have a median net worth of $23,400, vs $180,500 for their white counterparts. Black holders of graduate degrees have a median net worth of $84,000, versus $293,100 for their white counterparts.
-$1 trillion vs +$671 billion
Slightly old news, but this April 2017 report by the Federal Reserve Bank of New York puts student loans in a bigger picture context. The current level of total household debt ($12.6 trillion) is close to what it was during the previous peak in 2008. By whereas housing related debt has declined by $1 trillion, educational debt has increased by $671 billion. Recent graduates with student loans leave school with an average balance of $34,000, up 70% over the last decade. There goes saving up for home ownership.
$10,370 vs $4,320
Apartment List surveyed 11,000 millennials and found that 80% would like to own a home at some point. College grads with no student debt have a huge advantage, with an average of $10,370 in savings. Student loan borrowers have less than half in their bank accounts.
I’m tired of Seattle’s dark winter days but it could be worse! NPR says Moscow only had 6 minutes of sun light during the whole month of December, 2017.
2.4 cents per mile
KIRO 7 reports that Washington State is starting a pay-per-mile gas tax pilot. Gas tax revenues are projected to drop 45% by 2035 because cars are getting better gas mileage. The 2.4 cents per mile rate is based on what a 20.5 MPG car pays under the current 49.4 center per gallon gas tax.
According to Crosscut, only 44% of Seattle Section 8 voucher recipients were able to find housing in 2017. Section 8 covers the difference between fair market rent and what recipients are able to pay (up to 30% of their income). But Seattle recipients only have 180 days to find a willing landlord.