Private Student Loan Debt Borrowers Compared to Non-Borrowers
While higher education in many parts of the world is a luxury, for most young people in the US it is an expectation. This is true even for individuals coming from lower-income families, which can be problematic as college tuition continues to rise steadily. Students attending private colleges usually require greater financial assistance than those attending the average four-year school, and graduate schools are even more expensive. This affects not just young borrowers, but their parents too, as many either co-sign on their child’s loans or take out loans all their own.
Student Loan Hero recently analyzed data regarding millennials with student loans, finding evidence that further validates concerns over the financial futures of this generation. More than ever, the average American considers higher education to be a prerequisite for entering adult life, but are still struggling over the demands it places on them. So widespread is this issue that the economy could be facing a major downturn down the line. Usually, one of the crowning achievements of graduating from college and getting a job is purchasing a home; because of the growing student loan bubble, millions of borrowers in the typical target range are feeling too restricted to even buy a starter home.
Data shows that “the average net worth of a millennial with student loans is only 25% of the net worth for a fellow millennial without them.” Other interesting financial facts:
- Those with student loans show a huge disparity in net worth, with an average of only $29,087—in comparison to those without student loans who have $114,376.
- Millennials typically have 46 percent less in bank accounts – at $5,500 in comparison to $10,180.
- They usually have $21,160 saved for retirement as compared to $39,905 for those not carrying the burdens of student loans.
- Credit card debt is higher, at 55 percent, in comparison to 32 percent.
For those who run into trouble with student loans, private loan servicers are not as flexible as the federal government is with help like deferment, forbearance, or alternative income payment plans. Those who fall into delinquency are left with few options but to pay or run the risk of a collections lawsuit or a default judgment. While student loans can be extremely difficult to see discharged in bankruptcy, the financial hardships caused while trying to keep up with them may cause many debtors to file regarding other debts.
Have you experienced problems with your loan service provider or student loan program? 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