Young Student Loan Borrowers Already Dipping Into 401K Savings
As the parent of a younger student loan borrower you might often find yourself shaking your head and discussing how things just aren’t the same as they were when you were in college. And for many that is true, although there is a growing senior citizen base severely strapped down with massive student loans today also. The bottom line is that student loan debt, and especially massive private student loan debt on the personal level, is crippling many consumers and borrowers in the US; in fact, it is causing many to take desperate measures.
Whether you are a younger student loan borrower, middle-aged, or over the age of 65, it can be extremely frustrating to have worked so hard to get a degree, only to come out of school to be further stressed by financial woes from the outset. With so many struggling to pay what could be over $350 a month or more on the average, Delinquencies become common, and default looms for far too many. The pressure is even worse for individuals who were not able to graduate but are thrust into a fierce job market with an inability to make the income they had expected—while still burdened with student loans just like graduates with better prospects are.
Recent news shows that many millennials are being forced to break into their 401(k) savings far too early as they are strapped after paying their student loans each month, sometimes left too broke to even buy the essentials. This is a very dangerous financial cycle, and while it is distressing on the independent level, overall the ramifications for the nation’s economy are extremely concerning too. When 20 and 30-year-old consumers are not spending, undeniably the economy is affected. Starter homes are not being purchased, cars are not being purchased, and everyone begins to feel the pain with larger numbers attempting to pay credit card companies—and 16 percent paying off student loans.
“Near term, it may seem like a really good idea to pull that money out and bring down your debt, but it likely has real, significant, long-term implications,” says Lisa Margeson, head of retirement client experience and communications at Bank of America.
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.
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