Student Loan Crisis: Borrowers Need More Solutions, Less Blaming
For many of the 45 million borrowers mired in student loan debt, times are tough. This is especially true for students who take out private student loans, often not considering how dire the burden may be later—and magnified by a lack of willingness on the part of servicers to offer more help and flexibility during times of financial duress.
The vicious student loan cycle usually starts out innocently as borrowers, often barely out of high school, take out what may be massive amounts of funding due to plentiful optimism regarding the future and the projected ability to embark on a career and put money in the bank immediately. The government is quite willing to offer student loans, and while private student loans may be harder to come by, they are often still gained quite easily with the help of a co-signer (usually a family member or very close friend).
Undoubtedly, one of the greatest issues leading to the student loan crisis is the willingness of young borrowers to take out sizeable loans without really understanding what it could mean to have a $400 a month payment due to servicers for a long period of time. Weighed against the prospects of no education at all, however, whatever the borrowers’ intentions or understanding are, in many cases if they do not take out the loans—school is canceled.
As everyone looking into the ‘crisis’ continues to look for causes, rising student tuition tops the list along with cries that education should be free and individuals in the US should not struggle just to take on an endeavor—and a rather noble one at that—to learn, become experienced in a career or trade, and hope to start bringing home a suitable income. Schools are put in the hot seat over the student loan debate, regarding not just costs, but also being judged and scrutinized for overly aggressive (and sometimes not quite realistic) marketing campaigns to get many younger borrowers in, along with providing scarce counseling regarding the loans that are being taken on.
Recent news shows that 54 percent of students took on debts related to education.
“Repayment of this debt can be challenging,” stated data from the Federal Reserve. “In 2018, 2 in 10 of those who still owe money are behind on their payments — little changed from the prior year. Individuals who did not complete their degree or who attended a for-profit institution are more likely to struggle with repayment than those who completed a degree from a public or private not-for-profit institution, even including those who took on a relatively large amount of debt.”
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, call us at (855) 709-5788, or email us at firstname.lastname@example.org
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