Student Loan Debt Ten Years Ago Was $600 Billion
Student loan debt has become an obvious problem for consumers in the US, but mainly for younger borrowers. Unfortunately, they often lack the life experience to manage the simple household budgets—sometimes due to a lack of money management education and other times just because of challenges in adjusting to real life and all the bills that come with it. As most of us know, it isn’t easy out there even if you are making a fruitful income and enjoying the dream career that you hoped for.
There are 44 million borrowers in the US contributing to over $1.5 trillion in the cumulative student loan debt, with growing numbers falling into default. This is only expected to increase, unfortunately; analysts have been predicting that this student loan industry bubble will ‘burst’ soon, leading not only to more defaults but also negative repercussions to the economy.
Recent news points out that only ten years ago, the student loan debt was hovering at $600 billion—a far cry from the massive amounts continuing to increase today, leaving many millennial borrowers with average monthly payments in the $350 range per month. While graduates may struggle with such payments, it is even harder for borrowers who exited school without the expected degree, left to find their way in a lesser job market for lesser pay and more competition.
Analysts point out that the continued escalation of the student loan debt is notable:
“People pay attention to milestones,” said Mark Kantrowitz, a financial aid expert, also pointing out that the biggest issue is the impact these debts and continued monthly payments have on the individual borrowers (and often, their families too). He also states that many students will leave school with balances and payments that exceed the potential of their income.
If you are suffering from issues paying your student loan debt, review every option available to you before going into default. The repercussions from defaulting on a student loan are long-term and can cause problems like wage garnishing, federal interception of tax refunds, and other major problems—including the inability to get another student loan in the future.
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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