The student loan debt crisis is made up of undeniably disturbing statistics, leaving 45 million borrowers to pay off $1.6 trillion in the distant future, and it is doubtful that anything close to that total will ever be seen by the lenders. For many, in fact, analysts predict exponentially more defaults for borrowers, along with the possibility of continued legal and financial trouble for those unable to pay up.
The numbers, which continually grow larger, are owed to both the federal government and private loan servicers (around $100 billion), all of whom—along with financial analysts—are trying to figure out who to blame. Obviously, many take the greatest issue with the student loan borrowers themselves as they are responsible for paying back the debt but at this point all too often find themselves in varying degrees of delinquency and default at about 11 percent. With so many borrowers in distress, and so many more expected to go into default, clearly the system needs an upheaval; unfortunately, this probably means less borrowing, and ultimately, less educating.
Fingers point largely at for-profit schools. They have been heavily under fire for some time now, and often with good reason as they thrive on building overzealous marketing campaigns, making empty promises regarding skills, educational levels to be offered, and the caliber of jobs to be received upon graduation. All too often, for-profit schools close, leaving students still responsible for some loans and left out in the cold with empty-looking resumes.
Today, nearly 90 percent of for-profit college graduates have taken out student loans—on average, $39,950. These institutions may appeal to ‘non-traditional’ students, but they may not be happy with the results in the end.
“For-profits leave students with far larger student loan debt burdens” as well as “higher unemployment and ‘idleness’ rates and lower earnings from employment six years after entering programs than do comparable students from other schools,” states recent news upon the findings of Deming, Goldin, and Katz, who analyzed data from the 2004 through 2009 Beginning Postsecondary Students Longitudinal Study.
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan?
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.