Current Student Loan Debt Numbers Do Not Indicate Slowdown in Crisis
Student loan debt affects many borrowers in the US, and of all ages, from young students barely out of their teens to senior citizens who are yes, still paying off those loans for college tuition. If you are paying on student loans, chances are you did not agree to take them out with the understanding that you might feel burdened and extremely financially stressed about paying them back later. Unfortunately, this is the case for many borrowers today, with some even experiencing financial decline or being forced to file for bankruptcy due to the strain placed on them by monthly payments averaging over $350 for those in the 20- to 30-year-old range. That type of payment could prove to be hefty for many professionals already out earning a successful income; nevertheless, many borrowers do continue to make payments and pay off their loans. Others are not so fortunate, however, and may have delinquencies that they worry will lead to default—a process that should be avoided at all cost.
More Students Are Entering College & Tuition Continues to Rise
Currently, statistics show that there are 44.2 million citizens in the US with student loans, and 11.2 percent of those are at least 90 or more days delinquent, or have progressed into default. The number of borrowers taking out loans continues to rise, however, due to more interest in attaining both undergraduate and graduate degrees, and rising costs of tuition. One of the biggest issues, however, is that not everybody graduates. Nearly a third drop out for a variety of reasons. They may have not been able to control social temptations, ran out of money, needed to go back home to help family, or just gave in to the urge to head right into the workforce and start making bank—even if it was much less than hoped for upon entering college to gain the skills necessary for a high-paying job.
Students Continue to Take Out Loans—But Many Still Drop Out
Sadly, the Organization for Economic Cooperation and Development reports the US as having the highest dropout rate in the industrial world. Student loan servicers expect you to pay your loans back whether you graduated or not, and that can be significantly more difficult for borrowers without degrees and without the initially projected income. This does not seem to be a trend that is slowing down either. And although there are numerous programs available, such as deferment, forbearance, or even forgiveness of student loan debts, too many borrowers are either unaware or do not know how to take advantage of such opportunities.
The Burden of Monthly Payments Holds Many Borrowers Back
Whether borrowers have a degree and are pursuing careers or not, the burdens of the loans they took out years previously may ironically be exactly what is keeping them from advancing—even delaying getting married, having kids, or buying homes or cars. Lack of disposable income may prevent student loan debtors of all ages from starting their own businesses or chasing the dreams they planned on when taking out student loans. Delinquencies and defaults are not only bad news for the credit score, but they could lead to collections lawsuits, and even judgments.
Contact Us for Help Now
If you are currently delinquent or worried about defaulting on your student loans, contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys 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. We are here to help! Call us today for a free consultation at (855) 709-5788, or email us at email@example.com.