Statistics abound regarding student loan debt in the US, leaving us all certain of one thing: it is a major problem—a crisis—and it only continues to grow. Opinions also abound regarding ways to solve the crisis at hand, but rising students and those at the graduate level continue to take out loans as part of the norm—and then also continue to struggle in paying them back.
Rising tuition is one of the major reasons student loans are required, along with growing numbers of entrants into colleges and universities—more of whom may come from low-income families today. Public colleges average $35,370 and tuition for private colleges hovers at $45,370 per year. Unless parents are signing on for paying the whole ticket, or are co-signing, that means there are indeed many individuals in the 20- to 30-year-old range taking on tens of thousands in debt before they even land a job. The average monthly payment is just over $350 for student loans, making it easy to see why so many borrowers end up mired in delinquency and default so quickly.
It is recommended that students—and especially those seeking entrance into higher-priced schools—make sure to exhaust all other forms of relief first. This includes funding from any possible merit awards, school scholarships, and other grants. Surprisingly, all too many students fail to check out those options—and even sometimes federal funding too. Private student loans should usually only be sought once all scholarships and grants and federal loans have been used. In the end, numbers reported by Student Loan Hero show that 75 percent of students graduating from private nonprofit colleges had student loans averaging $32,300 and 88 percent exiting for-profit colleges left with loans averaging $39,950.
Data showing that a significant number of borrowers are missing out on highly beneficial funding is disturbing considering how many are overly burdened or in financial distress later over the types and amounts of student loans they are responsible for; for example, many did not take out Stafford loans at all, and 28 percent did not take the full amount for which they were eligible.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. 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 (844) 431-3851, or email us at firstname.lastname@example.org.