Student Loans Causing Many Young Debtors to Put Their Lives on Hold
Today there is much discussion regarding the burdens of student loans, spanning age groups from those barely out of high school to seniors. It seems that no generation has gone unscathed financially while simply trying to attain a higher education. With student loan debt in the US still growing, and now approaching $1.3 trillion, there are obvious concerns about the economy overall. This debt is larger than that of the overall credit card debt in the US (headed toward one trillion this year) and affects tens of millions of borrowers.
The Average Student Loan Debtor Has a Monthly Payment of $350
Many student loan borrowers are in varying stages of delinquency, despite numerous programs offered to help with repayment, along with deferment or forbearance plans. A recent study shows that the average borrower is expected to pay around $350 a month, with a default rate of 11.2 percent. Over half of the students graduating from public colleges left with an average of $25,500, while 75 percent of private college graduates were left carrying an average of $32,300.
Many Students Are Not Prepared for Financial Reality
The result is that not only are many graduates struggling to pay these monthly sums, they are currently shutting down in other areas where we once would have expected them to thrive. These financial burdens cause many to rule out buying homes, buying cars, getting married, and having children. Part of the problem is that many students simply aren’t prepared for such debt early on. When they are entering college or graduate school they don’t have a concept of how difficult it may be to pay $350 a month, along with all the other bills they will be responsible for once they are in the real world. Another problem cited is that many students are not given the proper counseling beforehand, or advised to exhaust all the proper avenues, such as grants or scholarships, before taking out public or private loans.
Another study, prepared by Bankrate, showed that 45 percent of those with student loans (56 percent between 18 and 29) have had to delay ‘major life events’ due to the financial strain, and over half of them mention a lack of counseling about the finances involved. The study showed that the most common delay was in buying a home. With so many millennials struggling to pay their bills, often the best bet after college today is to move back in with the parents and avoid paying rent until enough has been saved.
Look into All Your Options—Contact Us Now
There are many options available to borrowers today aside from missing out on some of life’s most important moments. If you currently have student loan debt that is of concern, or if your finances need an overhaul, an experienced attorney from Fitzgerald & Campbell, APLC can review your case and discuss all the available options with you.
Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy and other debt management processes. Let us review your case and discuss what would work best for you. We are here to help! Call us today for a free consultation at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Student Loan Debt