For the younger generations, credit card debt is not the largest debt they carry any longer. Now it is debt for college education. Current students and recent graduates are definitely not amazed, however for several it comes as a shock. The cost of a four year degree has risen dramatically over the last two decades. More people have to get federal loans, financial institution loans, or go to other loan lenders to pay for their education. The number of defaults on student loans is also going up. Becoming the American Dream is tougher and harder, and student education loans are a nightmarish part of making it happen. Post resource – Debt settlement relief unavailable when it comes to student loans by Personal Money Store.
Little or no students have no personal debt
For students, having to borrow cash to pay for college isn’t really an if. It’s a when. Of students graduating with a Bachelor’s from 2007 to 2008, 66.5 percent of them had to borrow cash to get through it, according to FinAid.org. The average amount of personal debt was $ 22,656. Public university students got off light. Only 61.1 percent had to borrow cash, and average $ 19,839 in personal debt. Nevertheless, the numbers were different for private schools. Private universities are always more expensive. Of private university students, 70.6 percent of students at private nonprofit schools and 97 percent at private for-profit schools have to take out loans. Private nonprofit graduates averaged $ 27,349 and private for-profit students averaged $ 24, 635 in debt for their educations.
Not even personal bankruptcy eliminates them
Student loan debt is type of like DNA. It is impossible to get rid of. You can’t just declare bankruptcy and discharge student loans like you can with mortgages or credit cards. Student education loans also differ in that it is near impossible to get debt settlement relief. There is little way out of having for making payments in perpetuity on student education loans. There isn’t really much, if any, loan modification or refinancing you can do. Not only that, but the number of people that default is going up. From 1995 on, 20 percent of all loans that entered the repayment phase were defaulted on, as outlined by the Chronicle of Higher Education. Each and every year post graduation, the risk goes up. The risk is also greater among two year and private institution graduated pupils.
College students pay dearly for their education
There are consequences due to these things, of course. Graduated pupils have to put things off longer. For those who have a huge college student loan debt, it’s far harder to afford things like a home, or kids, or going to graduate school.
Financial Aid
finaid.org/loans/
Chronicle
chronicle.com/article/Many-More-Students-Are/66223/
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