With such easy access to almost instant education cash, it is little wonder that ASA states that there is between nine-hundred to one trillion dollars of student debt in the United States as a whole. However, the student loan organizations do not tell the prospective borrower that many with debt have missed payments. ASA notes that “…about 5.4 million borrowers, have at least one past due student loan account.” The common rebuttal is, of course, that earning a college degree provides a higher income which will make the student loans worth it. While this point could be debated, it is only plausible for those students who actually graduate and go on to land a well-paying job. “Nearly 30 percent of college students who took out loans dropped out of school, up from fewer than a quarter of students a decade ago,” according to ASA. Once again, this statistic is another one that loan companies do not mention.
You can be sued and, if permitted by state law, your wages could be garnished . Just how much can be intercepted? Up to 25 percent of your paycheck. Ouch. Not to mention the credit report and score damage, which would negatively impact your ability to qualify for future loans for years to come.
So the 11.5% is really closer to 23% because the total amount of delinquent loans should be divided by $600 billion instead of $1.2 trillion. Whats more, these are just the loans that are 90-plus days past due. What of the debts that are 30 or 60 days late? Curiously, that data is nowhere to be found, except for a strong clue in the back of the report. A Closer Look at the Numbers One of the graphs in the report is entitled New Delinquency Balances by Loan Type. It depicts contract balances that became 30 or more days past due during the preceding quarter. For the period ending Dec.
Student loan repayment troubles? Don’t delay
At this point I can never even imagine a reality of owning a home or business until these loans are paid off, which is still at least 10 years away. Is there anything I can do to make a solid impact on my debt, and start reversing the cycle? Beau Don’t miss my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Subscribe now. – Click Here Dear Beau, I hear you.
However, for the students who have graduated and are fortunate enough to work in their field of study, these loans may be well worth it. It is important to weigh all the pros and cons, and make an informed decision regarding student loans. The Benedictine University at Springfield, in Illinois, has recently released news that they will be offering a new program to combat the dire effects of student loans. The Benedictine Promise, for eligible first-time freshman entering classes in the fall of this year, vows to help repay student loans for up to five years if the pupil is unable to pay. This seems to be an excellent program that more colleges will hopefully adopt in the future. While it may be comforting to know that help is out there if needed, the student is still ultimately responsible for fulfilling the commitment to the student loan debt.
My Student Loans Take Half My Income. Help.
— Denise Dear Denise, I hate to see you file for bankruptcy over a $9,800 student loan. I generally recommend it only when a person’s consumer debt is more than their annual income and they don’t see any way to pay the debt in the foreseeable future. Bankruptcy costs too much in time, money and future consequences to be used as anything other than a last resort. Another problem with bankruptcy is that it probably won’t get rid of your student loan debt. Long ago, students could finish their education, have student loans discharged in bankruptcy while they were still http://www.obamastudentloanforgiveness.net young and broke, and then start their careers unencumbered by debts for the education that made those careers possible. Now, unfortunately for you, the rules have changed.