Many Student Loan Borrowers Are Simply Too Young to Understand Financial Planning
College has turned into a serious catch-22 for many younger students today, affecting many student loan borrowers later. Often though, it presents the only viable opportunity for getting educated in a career that has the possibility to yield a good income that keeps growing later. While some may be going to technical or for-profit schools and others may be going to private or public four-year colleges, there can still be the need—as well as considerable marketing effort on the part of some learning institutions—to take out substantial amounts of financing. The problem is that while many young students and would-be borrowers are just eager to get into school at any cost, they are all too often left dealing with massive student loan debt that overwhelms them at a time they should be starting out with high hopes for the future.
Adult students, non-graduates, and other responsible parties such as parents are left to pay large student debts also, but most new students are exiting high school and know little about paying any bills at all, much less balancing a household budget successfully. The ‘crisis’ at hand as so many young people (as well as those way beyond their 20’s and many senior citizens too) begin to exhibit constant delinquency or outright default is under extreme scrutiny these days by government officials as well as financial analysts around the country who not only wonder how the economy will be affected but also where to begin pointing fingers.
For-profit schools are definitely under fire for over-marketing and then under-delivering in terms of releasing graduates out into the world who may not be able to produce incomes close to anything they were promised—and in all too many cases, such learning institutions shut their doors for business for good, leaving borrowers with wilting resumes regarding what they once assumed was going to be a stellar education. Graduate schools are also targeted as causing financial issues for consumers in the US due to the large amounts borrowed. See more on colleges producing the most amount of student loan debt here.
Lack of counseling, both upon entering and exiting school, is a valid issue also when it comes to borrowers who may be taking on excessive amounts. But for students barely out of high school, what constitutes too much? Their money management experience may be next to nil, and such skills can take many years to perfect—meaning that a student loan may go into default long before the borrowers realize what they did wrong to begin with or how they could have rectified the financial issue with a better budget.
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.
Posted in: Student Loan Debt