Student Loan Borrowers Take Out Larger Sums for Private Colleges
Whether you are one of the student loan borrowers struggling to pay down debt—or have been in that position previously—you are probably all too familiar with the depressing limits it can place on your household budget; in fact, you may have been driven into severe financial distress, resulting in collections lawsuits, bankruptcy, and even one or more default judgments against you. With 44 million borrowers currently in the process of paying back a cumulative $1.5 trillion to loan servicers, there is no longer a question of whether the numbers point to a crisis—but rather how to prevent it from continually escalating.
Borrowers, and young ones at that, are often held responsible for making payments of over $350 a month, not only straining budgets but also straining marriages to the point of divorce—and sometimes delaying plans for retirement too. Eleven percent are either in default or headed there, looking toward repercussions like marred credit, lawsuits, being barred from taking out other student loans in the future, and even garnishment of wages. And while most graduate students are forced to take out larger loans, recent news points out that individuals enrolled in private colleges tend to owe larger balances too.
Research from the National Center for Education shows that students tend to borrow ‘significantly more’ than their counterparts attending state learning institutions, with some owing nearly $60,000 for their four-year degrees. Some analysts also contend that default rates may be higher than currently thought as tracking has not been going on long enough for the government to have realistic numbers.
Even graduates who leave private colleges to enter their planned careers with the incomes they expected may be under duress with high payments that rival that of a car payment for a new vehicle. Typical milestones may be not be met these days either as borrowers feel too restricted in terms of finances to start businesses they may have gone to college to learn how to run, are worried about getting married, and delay having children. The bottom line is that going to school is very expensive, too expensive—and even more so for many who are attempting to go to the best college, so they will have a better chance of getting that high-paying job.
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? 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.
Posted in: Student Loan Debt