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Student Loan Debt Statistics In 2018: A $1.5 Trillion Crisis

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Student loan debt is now the second highest consumer debt category - behind only mortgage debt - and higher than both credit cards and auto loans.

According to Make Lemonade, there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. alone. The average student in the Class of 2016 has $37,172 in student loan debt.

The latest student loan debt statistics for 2018 show how serious the student loan debt crisis has become - for borrowers across all demographics and age groups.

If you are a student loan borrower, the following student loan debt statistics can help you make more informed decisions regarding student loan refinance, student loan consolidation, student loan repayment and student loan forgiveness.

Student Loan Statistics: Overview

Total Student Loan Debt: $1.52 trillion

Total U.S. Borrowers With Student Loan Debt: 44.2 million

Student Loan Delinquency Or Default Rate: 10.7% (90+ days delinquent)

Total Increase In Student Loan Debt In Most Recent Quarter:$29 billion

New Delinquent Balances (30+ days): $32.6 billion

New Delinquent Balances - Seriously Delinquent (90+ days):$31 billion

(Source: As of 1Q 2018, Federal Reserve & New York Federal Reserve)

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Why the Best Leaders Want Their Superstar Employees to Leave

When it comes to superstar employees, many extraordinary leaders have built outstanding companies not by hoarding great people for themselves, but by mastering the flow of talent through their organizations, writes Sydney Finkelstein.   PHOTO: ISTOCKPHOTO/GETTY IMAGES

When it comes to superstar employees, many extraordinary leaders have built outstanding companies not by hoarding great people for themselves, but by mastering the flow of talent through their organizations, writes Sydney Finkelstein. PHOTO: ISTOCKPHOTO/GETTY IMAGES

By Sydney Finkelstein

Should bosses try to hold on to their star performers?

For most of corporate America, the question might seem like nonsense. Star performers are seen as so valuable that managers should pull out all the stops to keep them—or else see their companies take a big hit in productivity.

Yet some of the best managers not only allow their top performers to leave, but actively encourage it.

I’ve spent the past 10 years studying the world’s greatest bosses across 18 industries, luminaries such as Ralph Lauren in fashion, Julian Robertson in hedge funds, Norman Brinker in casual restaurants, Larry Ellison in technology, Michael Miles in packaged food, Jay Chiat in advertising and Tommy Frist Jr. in hospitals, to name a few.

As I was surprised to discover, these extraordinary leaders achieved outstanding results in large part because they abandoned conventional thinking about keeping the best employees.

They weren’t afraid to lose their best people. On the contrary, most willingly unleashed their top performers onto the world, going out of their way to help them land outside opportunities. The leaders I studied built iconic businesses, transformed entire industries and in a number of instances became billionaires not by hoarding great people for themselves, but by mastering the flow of talent through their organizations.

Doing so will make an organization far more resilient, sustainable and successful over the long term. The talent-flow strategy is also better tailored to many of today’s abiding business realities, including volatile markets that demand more dynamic workforces; a generation of millennials less inclined to stick around for loyalty’s sake; and an entrepreneurial, gig economy that encourages frequent shifts in employment over the course of an individual’s career.

Not joined forever

The stories of these bosses reveal a crucial shared belief: You’re better off having the best people for a short time than average people forever. (Read More...)

 

Leading Across Boundaries: Respect, Leadership And The Future Of Work

By Hal Gregersen

Incivility – in the community, in politics, in the workplace – is on the rise. In one survey, nearly everyone (79%) believes it’s creating a serious problem in society. It’s whittling away at people’s health, performance and souls. It’s affecting business. It’s compromising the American Dream for future generations. How we treat one another matters. It centers on respect – something we, as a society, don’t seem to respect.

Many place blame for our plethora of problems at the feet of two camps: parents and leaders. It’s a fiery debate. But regardless of where the worst of our issues originate, leaders have the distinct responsibility – and greatest opportunity – to be the solution.

Tom Kochan, MIT Sloan School of Management Professor and author of Shaping the Future of Work, shares both my concern and my optimism. As he explained in our recent interview, “There’s such a deep need to bring people together. We have so many divisions in our society, in our workplaces and in our personal lives that we need leaders who can bring people together to resolve problems, to build consensus, to mobilize action, and then to actually make progress in dealing with the difficult challenges we face every day.” (Read More...)

Does Future of Work = Less Collaboration?

By Lisa Baird

Something’s afoot in the future of work, but it’s hush-hush. People don’t like talking about it. "I know it is ugly to say ‘unicorn,’ but yeah, you kinda do have to be the unicorn," Chris Noessel, head of design for IBM’s transportation group, tells me. Before joining the tech giant, Mr. Noessel spent a decade at the design and strategy firm Cooper.

His former boss, Alan Cooper, who invented (and later sold to Microsoft) the core design for Visual Basic, is even more cautious around the subject. "I think we in the design profession do ourselves and our colleagues a disservice by even recognizing the argument that ‘unicorns’ exist."

Noessel and Cooper aren't talking about tech unicorns—startups valued at over $1 billion—they're talking about people. I asked them both about the type of person whose professional expertise is both deep and wide in multiple subject areas, and whether such a worker's already high value has risen in recent years. Cooper seems to reject the notion of such a person outright; Noessel doesn't but is uncomfortable with the notion of a "unicorn" worker in his field—somebody with vast experience in business, technology, and design. Yet both men are clearly more than a little polymathic themselves. (Read More..)

This is Why People Leave Your Company

When Carly Guthrie was running HR for Per Se, one of the hottest restaurants in New York, the General Manager gave her a piece of advice: “You know, Carly,” he said. “If we’re doing our job as leaders, aperformance review should only be two columns: Column A is what you dogreat and Column B is what you do not-so-great. Now, here’s how wemove things from Column B to Column A.”

This approach stuck with Guthrie as she left the restaurant world to head up people operations for tech companies. It shocked her that these types ofcandid conversations were hardly ever happening, and people left as aresult. “There’s a mercenary mentality in tech right now — an idea thatthere’s always going to be something hotter, faster, more groundbreaking,” she says. “And yet, there’s very little internal discussion about how to keep people.”

Guthrie has been watching employees take and leave jobs for over 15years. Turns out, the reasons people love and hate their work are largely thesame across sectors. Step one to retention: Understanding why and howit fails. In this exclusive interview, Guthrie shares what she’s learned aboutwhy people quit, and what startups can do after an employee’s first day tomake sure they stay happy, engaged in their work, and committed to yourcompany (and to deleting every email they are most certainly receivingfrom recruiters).

THIS IS WHY YOU LOSE PEOPLE

You don’t respect their time.

In Guthrie’s experience, employees will follow up with recruiters and other job offers if they're even slightly angry, bored or dissatisfied. “Usually thehours are wearing on them or their spouse is on their case because they’re never home,” she says. “A really good CEO thinks about the bigger pictureand realizes people have lives outside of work. That’s the number oneway to prevent people from feeling like they might want to besomewhere else.”

But it’s easier than you think to be thoughtless. For example, Guthrie hasseen countless companies throw weekly happy hours that start at 4:30 p.m. every Friday. The result: People feel like they have to stay until 6 to bea good co-worker, then they get a slow jump on traffic, they get home laterand they’re tired, when they really want to just go do their own thing. “Just moving the happy hour to Thursday would show a tremendous amount ofawareness and make people feel that much better about the company andleadership,” she says. (Read More...)