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Private Student Loan Debtors in the US—What’s in the Millennial Household Budget?

private student loan debtors
  • Mar 11 2019

When is the last time you read a piece of news about the wonders of student loans, and the financial miracle they offer to rising freshman who could not afford college otherwise? You may be scratching your head trying to recall such a thing, amidst all the data regarding borrowers—many of whom are still very young—in crisis over loans for public and private colleges, and graduate schools. The problem today is that the debt overload outweighs the benefits of education in far too many cases, especially for those who graduate and are unable to get a job in their field, or one that pays enough.

The millennial household budget today is exhibiting irrefutable strain, for those with student loans of varying degrees. They have less net worth, less in their savings accounts, less in retirement accounts, and less to work with in terms of disposal income. Recent news and accompanying data shows that millennials with student loans to pay back had less assets and higher credit card debt; in fact, buying a home many not be an option for many—forcing them to rent homes or apartments or in some cases, still live at home with mom and dad. Data shows that those who do end up working in mortgage payments along with those student loan debts also have larger mortgages on less valuable homes. The average home payment for a borrower with student loans is $104,000 in comparison to $98,000

For the individual the challenges can be so enormous that they are forced into bankruptcy, or into default on student loans. On the national level, there are growing concerns that the economy could be affected as a whole—with industries like construction and real estate being hit especially hard. This is further exacerbated by borrowers so laden down with payments that they cannot afford to rent, or purchases sites for businesses, get them into operation, hire employees, and maintain companies with the proper amounts of capital.

While private student loans may be more difficult to pay back due to inflexibility with the servicer, you may have the option to refinance, allowing you to get into better financial shape—and avoid the possibility of delinquencies, a default, or even a collections lawsuit, or a default judgment.

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 info@debtorprotectors.com.

 

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Posted in: Student Loan Debt