Studies Shows That Americans Are Not Optimistic
A slight majority of Americans, 52 percent, are not optimistic about achieving the American dream of owning a home and attaining financial security for themselves and their family, according to a recent study by MassMutual. Over 17 percent of the adults in the U.S. hold student loan debt that averages over $34,000 per person. That $1.52 trillion of debt owed by 44.2 million people is weighing down the confidence of many individuals. American Financial Benefits Center (AFBC), a document preparation company, helps finds solutions for those struggling with student loan debt, guiding its clients into federal programs, such as income-driven repayment plans (IDRs).
“It is really unfortunate that people are becoming less confident that they can achieve financial security,” said Sara Molina, manager of AFBC. “As our clients know, we are able to help them in their effort to get some breathing room by assisting them in understanding and applying for certain federal repayment programs after navigating the sometimes complex student loan repayment process. Such programs may possibly lower their monthly payment so they can gain some control of their financial lives.”
Though a strong majority, 70 percent, of individuals felt the American Dream was alive and well, their hopefulness about their ability to achieve it was less robust. As well as student loan debt, respondents were also very concerned about their ability to pay for the care of a loved one, usually a parent, in-law or spouse, as they became elderly. This care, estimated at roughly $7,000 per year is nearly 20 percent of average annual income.
In addition, nearly 30 percent of Americans have less than one month of expenses saved and more than two-thirds of people were not confident they were doing a good job of preparing for retirement. Credit card debt remains stubbornly high, with 56 percent of people reporting they owed nearly $10,400. The 2008 market crash is also blamed for persistently lowering output by about seven percent, reducing the earning power of all Americans. For those facing reduced earning power due to student loan debt, AFBC can assist with the IDR recertification process, making sure documents remain up-to-date.
“I feel like we are working toward keeping the American dream alive for our clients, many of whom had lost hope before working with us to find a solution for being overburdened by student loan debt,” said Molina. “We feel good about making at least part of our clients’ lives more manageable and rewarding.”
