The student loan crisis has held a grip on news headlines for years now. Causing huge financial burdens for many of the 45 million borrowers entrenched in responsibility for paying off the cumulative debt of $1.6 trillion, previous to COVID-19, there were numerous factors coming into play for the financial issues being caused to so many.
From continually rising tuition at colleges and universities due to a wide range of administrative expenses, fingers have been pointed also at for-profit schools with overzealous marketing campaigns leaving graduates high and dry later with careers not panning out. Unfortunately, some of those learning institutions have even gone out of business, leaving borrowers with loans to pay off and big question marks for the futures of their education—not to mention the question mark on their resume in terms of citing where they went to school.
Other obvious issues factor in too, such as a lack of proper counseling. Younger borrowers simply do not know what they are getting into. Most may never have even held a real job, much less managed a household—and a household budget. This may not really be much of a concern for a freshman (or a loan servicer, who more likely is concerned about corporate meetings and annual bottom lines) but it certainly is for a graduate out on their own and heading into real adult life. Budgeting in significant portions of the income for student loans can be difficult for Americans of all ages—but for a 20-something, it’s obvious to see where challenges could arise, and quickly so.
Counseling is required in most cases, both at the beginning, as the borrower is taking on the loan, and upon exit of the college or university. While these are crucial opportunities to educate the borrowers about the extent of their loans and the impact it will have on them later, for the most part, it is just one more minimal hurdle to get past before receiving funds and heading off to class. These issues are being much more closely examined now as the student loan crisis begins to affect the nation economically.
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.