Why Students Continue to Take Out Massive Private Student Loans
As the crisis for federal and private student loans not only looms but almost seems to continue to propel itself forward like a locomotive, many wonder why such a system is allowed to go on; however, the situation shows no chance of resolving itself any time soon—and especially as even more individuals in the US not only decide to but are beginning to expect, to go to college. And while many different trade industries and trade schools are in growing need of greater interest around the country from students and workers, a large portion of rising high school seniors and individuals of other ages strive to attend four-year colleges, many of which are pricey, whether private or public.
Tuition rates are hefty in many cases, and they are continuing to rise. To keep up with these costs, along with trying to maintain life while purchasing all the basic essentials amidst rising cost of living, most students are forced to take out student loans, and sometimes this means even a mixture of the private student loan with the federal student loan, and any grants or scholarships that are available. It is a matter of concern also that so many rising students do not take the time to research or make use of a variety of scholarships and different funding programs – many of which do not even require stringent academic success.
Graduate school is a common reason for student loans too, as the tuition is high. Many students, while striving to attain even higher education, may be completely tapped out already. They may be older too, with other jobs, a spouse and kids already, and a list of responsibilities to manage. Education, sadly, is notorious for being out of reach financially for many. Still, however, new students continue to have the need to borrow—and lenders continue to lend.
Private student loan servicers tend to be more stringent in their requirements, much like a mortgage lender, and while getting a conventional type of loan can be easier for older students, younger ones usually don’t have any credit to speak of. This means that a co-signer is usually required, whether a relative or close friend. Co-signers are extremely helpful in many cases, but there can be extremely negative repercussions to their credit report in the event of delinquencies or student loan default—resulting in collections lawsuits and court judgments.
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! Click here to schedule a free 30-minute consultation, or call us at (855) 709-5788, or email us at email@example.com.
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