Every Friday our Personal Finance team will round up consumer news you need to know ahead of the weekend, on a segment we call “Family First” for YFi PM. Read below for this week’s round-up.
Hottest US job markets
Millions of students will be graduating from college in the next few weeks, no doubt many of them looking for employment. MoneyRates.com ranked the hottest job markets in a study that factored in total job growth over the past year, percentage job growth per city over the past year, and lowest current unemployment rate by city.
Nashville claimed the top spot, with the fifth-lowest unemployment rate of any metropolitan area. California’s Bay Area makes a comeback this year, rising from 16th to the fourth spot with a net total of 56,300 new jobs added in the past year. The notable newcomer of the bunch, breaking into the top 10 is Fort Myers, Fla. Texas is the only state boasting two cities in the top ten, Odessa (5) and Austin (9).
Best and worst cities for student debt
Students with college loans might also want to keep in mind that the city you live in could impact your ability to pay off your student debt. WalletHub ranked the cities where people are having the toughest time paying off their student loans in relation with their earned income. Santa Paula, Calif., residents are in the best shape for paying down their debt, while Sun City West, Ariz., is seeing the biggest struggle in the ratio of student debt to income.
The number of graduates with $50,000 or more in student loan debt has more than tripled since 2000. High balances combined with a payoff timeline that lasts into middle age force many graduates to delay or skip out on other milestones, such as saving for retirement or purchasing their first home.
Many student loan borrowers cannot keep up with their payments. According to Forbes, 40% of borrowers may default on their student loans by 2023. Larger debt doesn’t necessarily mean a tougher payment, though; students with smaller debts are more likely to default than those with larger ones.
Student loans make up the second highest form of household debt after mortgages, totaling $1.5 trillion nationwide. WalletHub recommends using a student loan calculator when deciding on how to tackle paying for your college tuition.