Student Loan Debt: Millennials Lead the Pack
Student loan debt is out of control in the United States, and that’s no exaggeration—in fact, it is more of an understatement as over 44 million borrowers work to pay back of a mixture of private and federal loans totaling over $1.5 trillion. For millennials, there is good news and bad news: they are gaining more degrees than anyone else, but borrowers under 30 years of age are responsible for monthly student loan payments over $350 on average. Even with a great job that can be a hard household budget to maintain! If you are currently living in a similar financial situation, you may be wondering if student loans are going to lead you into filing for bankruptcy over other bills that you now can’t pay—suffering from the irony also that it is very difficult to see student loan debt discharged in bankruptcy.
Recent news states, not surprisingly, that while student loan borrowers may eventually attain their desired degrees and careers and subsequent incomes too, they are having a hard time moving forward to thrive financially while bogged down with the loans meant to further their prospects. Data suggests that student loans may not be paying off in terms of average net worth; in fact, borrowers may be losing 75 percent of their net worth to such debt. It may also be restricting them from achievements previously considered normal for that age group after graduation, such as creating families, buying homes, and funneling money into a retirement account every month. Many may have to put off dreams such as opening their own businesses too, again, defeating much of the point of college for those who were planning on developing their talents as entrepreneurs.
Owing on student loans may make or break a millennial today, and especially private student loans that could end up being more expensive than federal loans—with much less flexibility for alternative repayment when a borrower runs into trouble later. Private student loans in delinquency and then default may also lead to aggressive collections activity such as lawsuits. Without a proper reply or an appearance in court, they may then escalate to default judgments, and even further to loss of wages, frozen checking accounts, and loss of property.
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 firstname.lastname@example.org.
Posted in: Student Loan Debt