Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college

“If you’re in that realm, you’re going to have problems in the long-run.” It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future. But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college. “If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, tha


“If you’re in that realm, you’re going to have problems in the long-run.” It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future. But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college. “If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, tha
Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: abigail hess
Keywords: news, cnbc, companies, taking, institute, work, equation, students, clayton, school, student, christensen, college, borrow, youre, going, cofounder, schools, reveals, debt


Clayton Christensen Institute co-founder: This equation reveals how much you should borrow for college

“You really want to be mindful that you’re not crossing that threshold of payments that are just going to crush your income because they’re taking up, say, 20, 30% of your monthly paycheck,” he says. “If you’re in that realm, you’re going to have problems in the long-run.”

It’s a smart way to avoid taking on more debt than graduates will be able to handle paying back in the future.

“As students look at the equation for how much they should borrow when they go to college, they ought to be thinking of the total debt that they take on as not being more than 10 to 15% of what their earnings are going to be when they leave college,” says Horn.

But Michael Horn, economist and co-founder of the Clayton Christensen Institute, tells CNBC Make It that there’s a simple way students can predict roughly how much they can afford to borrow for college.

The cost of attending college today is a daunting prospect. According to the College Board’s 2018 Trends in College Pricing Report , from 1988 to 2018, sticker prices tripled at public four-year schools and doubled at public two-year and private non-profit four-year schools, and many students use some kind of student loan to finance their degrees.

Students should think about what they want to study, research how much graduates at a given school in that major make, and not take on more than 10 to 15% of that amount in debt.

For example, according to PayScale, the average salary for an individual with a Bachelor of Engineering degree from New York University is about $91,296 per year. That means a student could plan to take on up to $13,694 (roughly 15% of their projected future salary) in loans to finance this degree.

However, the average salary for a worker with a Bachelor of Social Work degree from New York University is about $50,008 per year, so based on Horn’s recommendation, students should only take on about $7,501 in loans. Additionally, many social work opportunities require students to earn additional accreditation such as a master’s degree, and students should consider these costs as well.

Of course, this math is dependent on a student having a clear understanding of what they plan to pursue after college, something that can be challenging for many young people. Other factors students need to consider include a school’s reputation for graduating successful alumni, as well as its rate of on-time graduations.

“If you’re taking out $80,000 in debt to go to law school for example, and you’re going to a top law school, that’s probably a reasonable investment,” says Horn. “If you’re going to a bottom-third law school, a question you ought to be asking yourself is, ‘Is this worth it?’

“The most crippling debt is when you don’t complete. If [students] don’t complete, it can be crippling because they’re not going to have the wage bump from getting that college credential and so you’re going to be earning roughly as much as someone with a high school diploma is, but you have taken out $10,000 in debt.”

Horn emphasizes that debt totals have a significant impact on the financial lives of borrowers.

“Paying not just the debt back but also the interest on top of it, that can be really punishing to make the books work as you’re trying to think through raising a family, owning a home maybe in the future and other life decisions.”

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Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: abigail hess
Keywords: news, cnbc, companies, taking, institute, work, equation, students, clayton, school, student, christensen, college, borrow, youre, going, cofounder, schools, reveals, debt


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SEC’s Clayton needs to see key upgrades in cryptocurrency markets before approving a bitcoin ETF

SEC chairman on cryptocurrencies and investing 11:08 AM ET Wed, 6 June 2018 | 14:56Cryptocurrency enthusiasts have been eagerly awaiting the approval of what would be the first-ever bitcoin exchange-traded fund, or ETF. But the man largely behind greenlighting one — Securities and Exchange Commission Chairman Jay Clayton — has a few worries that need to be assuaged before he’s “comfortable” approving the investment vehicle. Because most cryptocurrency exchanges don’t use the same monitoring tool


SEC chairman on cryptocurrencies and investing 11:08 AM ET Wed, 6 June 2018 | 14:56Cryptocurrency enthusiasts have been eagerly awaiting the approval of what would be the first-ever bitcoin exchange-traded fund, or ETF. But the man largely behind greenlighting one — Securities and Exchange Commission Chairman Jay Clayton — has a few worries that need to be assuaged before he’s “comfortable” approving the investment vehicle. Because most cryptocurrency exchanges don’t use the same monitoring tool
SEC’s Clayton needs to see key upgrades in cryptocurrency markets before approving a bitcoin ETF Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: kate rooney, zach gibson, bloomberg, getty images
Keywords: news, cnbc, companies, secs, markets, exchanges, exchange, vehiclethe, clayton, investors, upgrades, york, needs, approving, worries, etf, key, bitcoin, chairman, stock, cryptocurrency, whats


SEC's Clayton needs to see key upgrades in cryptocurrency markets before approving a bitcoin ETF

SEC chairman on cryptocurrencies and investing 11:08 AM ET Wed, 6 June 2018 | 14:56

Cryptocurrency enthusiasts have been eagerly awaiting the approval of what would be the first-ever bitcoin exchange-traded fund, or ETF.

But the man largely behind greenlighting one — Securities and Exchange Commission Chairman Jay Clayton — has a few worries that need to be assuaged before he’s “comfortable” approving the investment vehicle.

The first is a lack of market surveillance.

Because most cryptocurrency exchanges don’t use the same monitoring tools as stock exchanges, Clayton said investors may not get a fair assessment of bitcoin’s price.

“What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation,” Clayton said at the Consensus Invest Conference in Manhattan. “It’s an issue that needs to be addressed before I would be comfortable.”

The New York Stock Exchange and the Nasdaq have what’s known as “surveillance,” or systems that monitor, prevent and investigate abusive and manipulative activity on the exchanges.


Company: cnbc, Activity: cnbc, Date: 2018-11-27  Authors: kate rooney, zach gibson, bloomberg, getty images
Keywords: news, cnbc, companies, secs, markets, exchanges, exchange, vehiclethe, clayton, investors, upgrades, york, needs, approving, worries, etf, key, bitcoin, chairman, stock, cryptocurrency, whats


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Why investing in the next big start-up could be a disaster for your finances

Mom-and-pop investors hoping to jump on the next hot tech start-up before it goes public may soon get their wish — and it could cost them. He also said that the agency’s staff is working on a concept release that will address the matter. Under current regulations, so-called private placements — the sale of securities directly to an investor, rather than through a public offering — are only available to a small group of well-to-do individuals, known as accredited investors. These individuals must


Mom-and-pop investors hoping to jump on the next hot tech start-up before it goes public may soon get their wish — and it could cost them. He also said that the agency’s staff is working on a concept release that will address the matter. Under current regulations, so-called private placements — the sale of securities directly to an investor, rather than through a public offering — are only available to a small group of well-to-do individuals, known as accredited investors. These individuals must
Why investing in the next big start-up could be a disaster for your finances Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-21  Authors: darla mercado, brauns, getty images, peopleimages, -andrew stoltmann, president of the public investors arbitration bar, -henry yoshida, certified financial planner, founder of rocket dollar, -barbara roper
Keywords: news, cnbc, companies, individuals, investing, investors, big, public, yearthese, startup, private, clayton, investor, current, securities, finances, invest, disaster


Why investing in the next big start-up could be a disaster for your finances

Mom-and-pop investors hoping to jump on the next hot tech start-up before it goes public may soon get their wish — and it could cost them.

In August, Jay Clayton, chairman of the U.S. Securities and Exchange Commission, spoke at a conference in Nashville, outlining plans that would make it easier for individuals to invest in private companies that haven’t yet gone public.

“We should also consider whether current rules that limit who can invest in certain offerings should be expanded to focus on the sophistication of the investor, the amount of the investment or other criteria rather than just the wealth of the investor,” Clayton said in his Aug. 29 prepared remarks at the 36|86 Entrepreneurship Festival in Nashville.

He also said that the agency’s staff is working on a concept release that will address the matter.

Under current regulations, so-called private placements — the sale of securities directly to an investor, rather than through a public offering — are only available to a small group of well-to-do individuals, known as accredited investors.

These individuals must have earned income that exceeded $200,000 in each of the last two years ($300,000 if married) and they must reasonably expect the same for the current year.

These investors must also have a net worth exceeding $1 million, excluding the value of their primary residence.


Company: cnbc, Activity: cnbc, Date: 2018-09-21  Authors: darla mercado, brauns, getty images, peopleimages, -andrew stoltmann, president of the public investors arbitration bar, -henry yoshida, certified financial planner, founder of rocket dollar, -barbara roper
Keywords: news, cnbc, companies, individuals, investing, investors, big, public, yearthese, startup, private, clayton, investor, current, securities, finances, invest, disaster


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SEC chief says agency won’t change securities laws to cater to cryptocurrencies

Clayton said the U.S. has built a $19 trillion securities market that’s “the envy of the world” following the current rules. The agency is not adjusting rules for the fundraising process known as initial coin offerings, or ICOs, either, he said. The SEC is “happy to help you do that public offering” if issuers take the responsibility SEC laws require, he said. “Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin,” Clayton said. Bi


Clayton said the U.S. has built a $19 trillion securities market that’s “the envy of the world” following the current rules. The agency is not adjusting rules for the fundraising process known as initial coin offerings, or ICOs, either, he said. The SEC is “happy to help you do that public offering” if issuers take the responsibility SEC laws require, he said. “Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin,” Clayton said. Bi
SEC chief says agency won’t change securities laws to cater to cryptocurrencies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-06-06  Authors: kate rooney
Keywords: news, cnbc, companies, securities, digital, sec, laws, coin, clayton, bitcoin, security, icos, cryptocurrencies, cater, cryptocurrency, agency, wont, chief, change


SEC chief says agency won’t change securities laws to cater to cryptocurrencies

The head of the Securities and Exchange Commission made it clear Wednesday that the agency won’t bend the rules for cryptocurrency when it comes to defining what is or what isn’t a security.

“We are not going to do any violence to the traditional definition of a security that has worked for a long time,” U.S. Securities and Exchange Commission Chairman Jay Clayton told CNBC Wednesday. “We’ve been doing this a long time, there’s no need to change the definition.”

Clayton said the U.S. has built a $19 trillion securities market that’s “the envy of the world” following the current rules.

The agency is not adjusting rules for the fundraising process known as initial coin offerings, or ICOs, either, he said. ICOs have raised $9.1 billion this year alone, according to the latest research from Autonomous Next.

“If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules,” Clayton said “If you want to do any IPO with a token, come see us.”

The SEC is “happy to help you do that public offering” if issuers take the responsibility SEC laws require, he said.

The chairman also addressed a growing debate over which cryptocurrencies should fall under SEC jurisdiction.

“Cryptocurrencies: These are replacements for sovereign currencies, replace the dollar, the euro, the yen with bitcoin,” Clayton said. “That type of currency is not a security.”

A token, or a digital assets used in a fundraising process known as an initial coin offering, or ICO, are securities by Clayton’s definition.

“A token, a digital asset, where I give you my money and you go off and make a venture, and in return for giving you my money I say ‘you can get a return’ that is a security and we regulate that,” Clayton said. “We regulate the offering of that security and regulate the trading of that security.”

Whether an asset is a security right now follows the “Howey Test.” The ruling comes from a 1946 U.S. Supreme Court case that classifies a security as an investment of money in a common enterprise, in which the investor expects profits primarily from others’ efforts.

Clayton made it clear in March that all ICOs constitute securities, and reiterated that Wednesday saying “if it’s a security, we’re regulating it.”

But companies tied to those cryptocurrencies have argued that some should be fall under a different category, in many cases because of their utility.

The financial watchdog has been balancing consumer protection and innovation in what has become multi-billion dollar cryptocurrency market. The market capitalization of bitcoin alone is more than $130 billion, according to CoinMarketCap.

On Tuesday, the SEC picked a new leader for its emerging cryptocurrency division. Valerie Szczepanik, who already worked at the agency, was promoted to a role that didn’t exist until this week: Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation.

Bitcoin began its price descent in March, falling below $10,000 after the agency said it would require digital asset exchanges to register with the agency.

Prices have struggled to recover since. Bitcoin is down roughly 50 percent in 2018 after climbing more than 1,300 percent last year, according to data from CoinDesk. The cryptocurrency was trading near $7,638 as of 10 a.m. ET Tuesday.

Bitcoin’s three-month performance

Source: CoinDesk

In late April, SEC Commissioner Robert Jackson told CNBC the agency was not looking to ban the fundraising process known as initial coin offerings, or ICOs, and remains open to a legal avenue for crypto investments.

One month later, the SEC created the website HoweyCoins.com to show investors some of the ways a site can look valid when it actually could be a scam. The agency has cracked down on ICOs year: It has continuously warned of pump-and-dump schemes, issued subpoenas and charged multiple coin projects with fraud.

Fundstrat co-founder Tom Lee and other bitcoin pundits have predicted that institutional investors need more guidance from regulators like the SEC until they fully buy into crypto. Lee told CNBC this week that investors are in “purgatory with regard to regulatory clarity.”

This is a breaking news story. Check back here for updates.


Company: cnbc, Activity: cnbc, Date: 2018-06-06  Authors: kate rooney
Keywords: news, cnbc, companies, securities, digital, sec, laws, coin, clayton, bitcoin, security, icos, cryptocurrencies, cater, cryptocurrency, agency, wont, chief, change


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After Equifax hack, SEC Jay Clatyon ‘we are constantly under attack’

SEC doesn’t even know how bad this hack is: Cybersecurity expert 7:22 PM ET Fri, 22 Sept 2017 | 03:08Securities and Exchange Commission Chairman Jay Clayton called Tuesday for better disclosure from companies whose computer systems have been hacked. Speaking as the Equifax hack controversy continues to swirl, Clayton said the current level of information coming from companies is inadequate and posing dangers on multiple fronts. “Companies should be providing better disclosure about their risk pr


SEC doesn’t even know how bad this hack is: Cybersecurity expert 7:22 PM ET Fri, 22 Sept 2017 | 03:08Securities and Exchange Commission Chairman Jay Clayton called Tuesday for better disclosure from companies whose computer systems have been hacked. Speaking as the Equifax hack controversy continues to swirl, Clayton said the current level of information coming from companies is inadequate and posing dangers on multiple fronts. “Companies should be providing better disclosure about their risk pr
After Equifax hack, SEC Jay Clatyon ‘we are constantly under attack’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-09-26  Authors: jeff cox, jim bourg, zach gibson, bloomberg, getty images
Keywords: news, games, cnbc, companies, companies, clatyon, assess, expect, constantly, hack, clayton, equifax, attack, providing, better, jay, sec, disclosure


After Equifax hack, SEC Jay Clatyon 'we are constantly under attack'

SEC doesn’t even know how bad this hack is: Cybersecurity expert 7:22 PM ET Fri, 22 Sept 2017 | 03:08

Securities and Exchange Commission Chairman Jay Clayton called Tuesday for better disclosure from companies whose computer systems have been hacked.

Speaking as the Equifax hack controversy continues to swirl, Clayton said the current level of information coming from companies is inadequate and posing dangers on multiple fronts.

“Companies should be providing better disclosure about their risk profile. Companies should be providing sooner disclosure about intrusions that may affect shareholder investment decisions,” the regulatory chief said during testimony before the Senate Committee on Banking, Housing and Urban Affairs. “Across our markets there should be better disclosure as to the cyber-risks we face.”

Clayton said he couldn’t speak on the Equifax matter specifically. But he said disclosure is a general problem that impacts both consumers and investors.

“We expect people to constantly assess,” he said. “When they have notice of a cyberbreach we expect people to constantly assess whether that breach is material to investors, and when they determine that it is, make appropriate disclosure promptly.”


Company: cnbc, Activity: cnbc, Date: 2017-09-26  Authors: jeff cox, jim bourg, zach gibson, bloomberg, getty images
Keywords: news, games, cnbc, companies, companies, clatyon, assess, expect, constantly, hack, clayton, equifax, attack, providing, better, jay, sec, disclosure


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