📚 SURVEY: The state of student debt

PLUS: China’s Uber is worth $70B+.. June 16, 2021 [The Hustle] [The Hustle]( Calling all IKEA lovers: We’re working on a story about the strange, wonderful, thriving industry of “IKEA hacking” and could use your help. Please take a few minutes to [fill out our super quick survey here](. The big idea [student debt] The $1.6T student debt problem More than 40m Americans have student loans, owing an average of $37k per borrower -- or a total of $1.6T, per new [stats]( from the Department of Education. During the pandemic, Americans with federal student loans have been able to avoid making monthly payments and accruing interest. But that freeze is set to [end]( on September 30. In anticipation of potential policy changes, we surveyed 384 readers of The Hustle who reported taking on student loans at some point. Among the results: Betsy Mayotte, president and founder of [The Institute of Student Loan Advisors (TISLA)](, says loans have caused many borrowers to delay homeownership, marriage, children, and retirement. (Some people even[worry]( about marrying people with debt.) For some borrowers, student debt lasts for decades... In the early 2000s, many borrowers consolidated loans to take advantage of low interest rates. Many also signed up for income-based repayment plans that match their payments to their salaries, but can extend terms by 20+ years. Mayotte spends a lot of time on Reddit forums, where many people say they would prefer a permanent reduction in interest -- which can be 8% or more for some borrowers -- over student loan forgiveness. “There’s an emotional toll in making payments every month and still seeing your balance go up,” she says. The freeze has helped One Hustle reader who couldn’t save before banked $7k, while another paid down $18k on their principal. Another said they finally have a savings account and “feel relatively prepared if a larger expense were to come up.” Others are less well-off: “With interest being put on hold, I've finally been able to put a dent in my loan while also saving a couple hundred for myself. My loan payments are something I dread and I am close to just giving up on them altogether.” Mayotte is worried we’ll see more delinquencies. Her advice? - “The faster you pay the loans off -- unless you’re pursuing a forgiveness program -- the cheaper the loans are gonna be in the long run.” And there’s never a prepayment penalty. - Get in the habit of regularly reevaluating how you pay your student loans. - If you think you might need a lower repayment option or advice, start lining things up in August and be prepared for longer wait times. - If you need help, ask. But don’t pay for it. Scams are abundant, but the Department of Education website and groups like TISLA are available to help for free. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=The+%241.6T+student+debt+problem%0Ahttps%3A%2F%2Fthehustle.co%2F06162021-student-debt%3Futm_campaign%3DStudent%2BDebt%26utm_content%3D06162021-student-debt%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( SNIPPETS NEW! Introducing our new and improved [Snippets](. You can now get extra snippets on your favorite topics. Follow the button below to get started. (It takes less than 30 seconds!) Facebook’s Clubhouse rip-off clone: The social network did its first public test of [Live Audio Rooms]( in the US yesterday. CEO Mark Zuckerberg held court with other tech entrepreneurs. [Lina Khan]( -- a Columbia Law professor and leading Big Tech critic -- was named Chair of the Federal Trade Commission (FTC). AT 32, she is the youngest person ever to hold the position. The EU and US will suspend the [trade war]( between their respective airplane manufacturers (Airbus, Boeing). The deal will pause tariffs for 5 years. Not The Onion: Joe Exotic -- the lead character for Netflix’s smash series “Tiger King” -- has plans to [sell NFTs]( and weed from prison. Join the 55,434 others who are now enjoying extra, personalized snippets. Click the button👇 to choose your favorite topics and see your list grow in tomorrow’s email. [Personalize Your Snippets]( European Tech [Klarna app]( Fintech Klarna becomes Europe’s most valuable startup, worth $45B+ Last week, Swedish fintech wunderkind Klarna announced a monster $639m funding round, bringing its valuation to a Scrooge McDuck-sized $45.6B and cementing its status as Europe’s biggest startup. The round was led by SoftBank’s Vision Fund 2 (AKA Masayoshi’s moneybag), marking its value up 4x from just 8 months ago. The king of ‘Buy Now, Pay Later’ (BNPL) Klarna provides retail customers with an interest-free finance option to make large purchases -- BNPL services occupy a space between traditional layaway and purchasing with a credit card. In an exclusive interview with [TechCrunch](, Klarna’s CEO and founder Sebastian Siemiatkowski points to the company’s growth in the US as a driver of Klarna’s recent success. The stats don’t lie: - 18m+ US customers are using Klarna - 24 of the top 100 US retailers offer financing through Klarna - 90m+ global active users, w/ 2m+ daily transactions processed - In 2020, Klarna processed $53B in volume, compared to competitor Affirm’s (womp womp womp) $8B Rumors are circulating that Klarna may be preparing for a public listing within the year. But is BNPL bad for consumers? Recent [reports]( from Citizens Advice highlight the risk of BNPL present to general consumers. BNPL companies use what are called “soft” credit checks, which do not always uncover other outstanding debt. Citizens Advice found that 4 in 10 of consumers who used BNPL in the last 12 months are now struggling to make payments. Which raises the question that may cloud Klarna’s prospects: Whose responsibility is it? The consumers’? Or the company issuing credit? [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=Fintech+Klarna+becomes+Europe%E2%80%99s+most+valuable+startup%2C+worth+%2445B%2B+%0Ahttps%3A%2F%2Fthehustle.co%2F06162021-Klarna%3Futm_campaign%3DStudent%2BDebt%26utm_content%3D06162021-Klarna%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( China Tech [DiDi vehicle]( China’s Uber, DiDi, files its US IPO DiDi -- the ride-sharing company that holds [90%]( of China’s market share -- filed for its US IPO last week. Its valuation could hit $70B+, per [The Wall Street Journal](. Known as China’s Uber… … DiDi was founded in 2012, then [merged]( with competitor Kuaidi in 2015. A year later, it merged with Uber China in exchange for a stake in DiDi, which Bloomberg pegs at [12.8%](. DiDi now [operates]( in 15 countries -- [including]( Mexico, Brazil, Australia, and [recently]( South Africa -- but only ~12% of its active users are outside of China, per [Protocol](. DiDi may not ever be profitable Though DiDi has lost money in the last several years -- including [$1.6B]( last year -- it turned a profit of ~$30m in the first 3 months of 2021. Still, it [noted]( to investors that the company “may not be able to achieve or maintain profitability in the future.” Just like [Lyft](. And [Uber](. Also not unlike US ride-sharing companies, DiDi has had several controversies, including allegations of high driver-[commission fees]( and a [report]( that suggested iPhone users were charged more. Far worse, in 2018, DiDi [suspended]( its carpooling service Hitch after 2 female passengers on 2 separate occasions were [murdered](. DiDi plans to spend the net profits of its offering like this: - ~30% on expanding globally - ~30% on shared mobility, EV, and autonomous driving tech - ~20% on developing new products and expanding existing offerings - The rest on “general corporate purposes” And this may be obvious, but DiDi’s ticker will be… $DIDI. [Share on Facebook]( [Share on Twitter]( [Send as email to a friend](mailto:?subject=The%20Hustle%20wrote%20something%20I%20think%20you%27ll%20like...%0A&body=China%E2%80%99s+Uber%2C+DiDi%2C+files+its+US+IPO%0Ahttps%3A%2F%2Fthehustle.co%2F06162021-DiDi-ipo%3Futm_campaign%3DStudent%2BDebt%26utm_content%3D06162021-DiDi-ipo%26utm_medium%3Demail%26utm_source%3Ddaily%0A%0AYou%20can%20subscribe%20with%20my%20link%20here%20to%20get%20the%20latest%20in%20tech%20and%20business%20daily:%0A [View on our website]( Podcast From $600 in startup costs to $15k a month in revenue And a very simple business model. That’s how Quinn Miller built a successful vending machine business in 10 months with 65% profit margins. And how big can the business become? Quinn met someone who runs a vending machine business that makes $5-$10m in revenue with 50% profit margins off 1.6k machines. On episode #187 of My First Million, Sam and Shaan break down how you can successfully replicate this business. [🎧 Listen here →]( TRENDS We’re giving away a 3D printer! Earlier this year, our analysts presented [the enormous opportunities within the 3D printing space.]( We showed you how Trends members have utilized affordable 3D printers (some less than $500) to build 7-figure businesses and how you can do the same. Now, we’re putting our money where our mouth is. We’re giving away a top-of-the-line 3D printer so that Trends members can start building. To enter for a chance to win, all you have to do is [try one week of Trends for just $1.]( We’ll see you on the inside. [Claim your chance →]( Athlete of the day [Cristiano Ronaldo holding a Coke bottle] Cristiano Ronaldo telling people to drink water (Source: Insider) Soccer superstar Cristiano Ronaldo removed 2 bottles of Coca-Cola during a press conference on Monday and said “drink water” in Spanish. The episode happened for a UEFA Euro 2020 event (the confusing date in the pic is because the tournament was postponed a year by the pandemic). Ronaldo is known for his insane dedication to fitness and -- according to [Insider]( -- once said he gets “pissed” when he sees his children drink Coca-Cola. As is always the case on the internet, someone had a negative spin: sports betting site Paddy Power tweeted a photo of Ronaldo in a KFC ad and [quipped](: “[He] doesn't mind big buckets of fried chicken, though.” SHARE THE HUSTLE [Hustle Cons Greatest Hits ebook]( Over the years, we’ve learned… secrets. 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