Student Loan Defaults: Forty Percent By 2023
It is hard to escape the facts regarding student loans and student loan defaults in the US, whether you have a student loan to re-pay or not. Even if you aren’t on the line for sending a monthly payment to a student loan servicer which may average over $350 a month, most likely you have a loved one or friend who is. And the challenges in repaying student loan debt today can be so challenging that they disrupt what we previously saw as the normal course of life: getting married, buying a house and maybe a new car too, having kids, and perhaps even opening a thriving business.
Recent data today shows even worse projections for the crisis at hand as student loan borrowers are expected to default in much larger numbers—reaching 40 percent by 2023. Graduates and non-graduates alike are struggling due to numerous factors. The job market may be challenging, but there may be surprises in store even for those who exited school and got the jobs they wanted. Even with a good income, it can be hard to pay the essential bills in life and then tackle a substantial student loan payment too; in fact, the financial burden may run so deep that some younger borrowers are forced into filing for bankruptcy almost before they even get a real start in life. The student loan though, nearly impossible to discharge, remains.
If you are currently having trouble paying your bills and other debts, with student loans figuring in as a central challenge, consider every other avenue before throwing in the towel to a default. While walking away from student loans (or other debts) may seem tempting, such action can have long-term, negative consequences. While your credit will take an obvious and massive hit first, the loan servicer can take much more aggressive action against you. A private loan servicer has the option of suing you and even getting a judgment—meaning they can move forward to have your wages garnished, property seized, and bank accounts frozen. If you have a federal loan, your much-needed tax refunds may be intercepted, wages garnished (up to 25 percent of disposable income), and an opportunity for student loans in the future could be seriously diminished.
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.
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