Hard Facts About Student Loan Default: Student loan default is becoming an all-to-common phrase. According to a recent article in the Wall Street Journal, approximately 43% of student borrowers are not making payments or are behind on their student loans. Below are some key points from this article. As of January 1, 2016: Approximately 22 million Americans have federal student loans; … [Read more...]
Category: Student Loan Debt
The amount of student loan debt has reached epic proportions, with Americans owing almost $1.3 trillion. And a significant portion this debt is classified as in either deferment, forbearance or default – because no payments are being made. In many other instances, the borrowers are making payments so small that the total obligation is growing rather than shrinking. In the most dire of circumstances, the debt has been guaranteed by a parent, and neither the student nor the parent can afford to make even the minimum payments. This blog series is devoted to:
- Helping student borrowers understand the student-loan-debt crisis;
- Ensuring prospective students evaluate both the costs and benefits of taking on student loans, and
- Assisting those student borrowers already struggling under student loans.
Read through our blog series on this topic. Help contribute to our discussion of the crisis, and assist students with making intelligent decisions regarding the costs of pursuing an education.
Student loans are unique, but not in a good way. It is one of the very few debts that you can probably never discharge in bankruptcy. Unless you can satisfy the very rigorous “undue hardship” test, you are likely stuck with your student loan. Even if you can discharge all other debts, student loans could be the one debt that survives a bankruptcy filing. Even money owed to the IRS is less … [Read more...]
Unable to pay student loans? Know anyone in this situation? (Hint: you probably know quite a few). As some unfortunate borrowers have found out, there are real consequences to defaulting on student loans. After all, the creditor holding your debt is perhaps one of the most powerful that exists. The Federal Government is a Unique (and Powerful) Creditor When it comes to student loans, lenders can … [Read more...]