Briefs

Like generations that came before them, Gen Z and Millennials want to own homes, start businesses, retire comfortably, and leave something for their loved ones. However, not everyone has an equal chance of achieving these ambitions. Julian Bond Institute’s 2050 Survey, a nationally representative survey of Americans’ financial experiences and aspirations, found that whether Gen Z and Millennials are on track to achieve their financial aspirations is in part determined by the financial resources of their households of origin. Whereas people with intergenerational wealth are more likely to be on track to achieve their own wealth-building goals, those who have faced financial hardships in childhood are more likely to feel off track and more likely to experience further wealth stripping from high-cost credit products. Drawing on data from the 2050 Survey, we illustrate the uneven playing field of intergenerational wealth in six charts. Policymakers and financial institutions must act now to close access gaps and rein in predatory credit products, so that young Americans can achieve their financial ambitions regardless of the financial resources of their family of upbringing.

As living costs continue to rise and the federal student loan system is being fundamentally restructured, millions of borrowers are caught between increasing household expenses and a repayment system that is becoming harder to navigate. Understanding the financial condition of the borrower population before these changes take full effect matters because policy changes interact with the financial circumstances of the people they affect. Drawing on data from the Julian Bond Institute’s 2050 Survey, which was administered by NORC at the University of Chicago, this analysis examines how federal student loan borrowers are faring as those changes take effect. The survey is a nationally representative effort designed to examine financial experiences at the intersection of race and generation, and it captures a broader range of financial indicators than most existing data sources. The findings reported here draw on the subset of respondents who currently hold federal student loan debt. The data show that many borrowers are already financially strained. For a population already managing multiple debt obligations, with little savings and limited cash flow, policy changes that increase payment obligations, narrow repayment options, or resume aggressive collections could not be coming at a worse time.