USA Today - 05.11.2019

Russ WIles

Columnist

USA TODAY

The growing student loan problem has emerged

as an issue for the 2020 presidential election. Dem-

ocratic contenders Bernie Sanders, Elizabeth War-

ren, Joe Biden and others have proposals to cancel

or forgive much of this debt.

Balances have mushroomed in recent years to

$1.5 trillion, making student loans second only to

mortgages among consumer lending categories.

The typical borrower pays about $179 a month, or

5% of his or her income to meet student-loan obli-

gations, according to the J.P. Morgan Institute.

Though that seems manageable, loan burdens are

disproportionately carried by younger, less affluent

individuals.

Unlike credit card borrowing and many other

types of debt, student loans typically can’t be dis-

charged in bankruptcy. About one in nine loans are

90 or more days delinquent, according to the Feder-

al Reserve Bank of New York.

Student loans can be helpful. The nonprofit

group Credit.org considers these loans to be “good

debt” – a type of borrowing that, through increased

education, adds value to your life in terms of boost-

ing your net worth or income potential.

With a college degree, “you’re probably in a more

employable situation with higher lifetime earning

potential,” said Michael Rusinak, a certified finan-

cial planner and director of financial solutions at Fi-

delity Investments.

But plenty of borrowers face problems or don’t

fully appreciate what they’re up against.

“This is often a person’s first experience with

debt and having interest accrue (against them),”

Rusinak said.

Here are some tips to keep things from getting

out of control:

Student loan debt repayment typically starts six

months after a student graduates.

The payment clock can be delayed if a person re-

mains in school, but otherwise borrowers need to

know that this grace period will end and that they

Make payments on time and develop

a strategy to avoid being overwhelmed

“This is often a

person’s first

experience with

debt and having

interest accrue.”

Michael Rusinak

Director of financial solutions

at Fidelity Investments

SeeLOAN DEBT, Page 2B

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MONDAY MARKETS

SAUDI ARABIA FORMALLY
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Saudi Arabia formally began an initial
public offering Sunday of a sliver of oil
giant Saudi Aramco after years of
delay, hoping international and local
investors will pay billions of dollars for
a stake in the kingdom’s crown jewels.
An approval by Saudi Arabia’s Capital
Market Authority served as the start-
ing gun for an IPO promised by Crown
Prince Mohammed bin Salman since
2016.

EUROPEAN AIRLINE GIANT
TO BUY SPANISH CARRIER

The parent company of British Air-
ways and Iberia has agreed to buy
Spanish rival Air Europa for 1 billion
euros.
In a statement released Monday, the
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says the purchase will be completed
by the end of 2020 if competition
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GANNETT REPORTS
EARNINGS DECLINE

Gannett, owner of USA TODAY and 109
local media properties, on Monday
reported a continued decline in overall
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marketing services and increased
digital subscriptions as positive con-
tributors to its bottom line.
Gannett's third-quarter earnings re-
sults were was released as the compa-
ny awaits shareholder approval to
combine with New Media Investment
Group.

Saudi Aramco CEO Amin Nasser

Memoir captures Susan Rice’s career

Foreign policy expert was adviser to Obama. 2B

Airport annoyances have solutions

Stay calm and use professionals to plan ahead. 3B

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News from every state. 6B

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STUDENT LOAN DEBT