A new study released by the Institute for Higher Education found that many people with student loan debt are having problems paying them back, The New York Times reports, “Loan Study On Students Goes Beyond Default Rates”, Wednesday, March 16, 2011.
The numbers are impressive. For every borrower that defaults on a loan, two more are fall behind in their payments. Two out of five students became delinquent in the first five years after they started repaying the loans. Only 37 percent of borrowers who started repaying the loans in 2005 were able to make payments on time. On the other hand, default rates went up to 7 percent for the 2008 fiscal year, the most recent year for which data is available, from 5.2 in the 2006 fiscal year.
According to Mark Kantrowitz, the publisher of Findaid.com and Fastweb.com, total student debt is about $896 billion, more than the country’s credit card debt. And student debt is increasing. An annual report from the Project on Student Debt found out that students who graduated in 2009 had an average loan debt of $24,000, up 6 percent from 2008.
We at the Law Offices of Lutzky and Labayen are concerned about the problems young people are having with debt. If you are experiencing problems with debt and you are in need of legal advice, please call us or visit us for an initial free consultation.
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Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. People deserve wealthy life time and loans or just auto loan would make it much better.
Pretty nice post. I just stumbled upon your blog and wanted to say that I have really enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!
I have $70k+ in loans from quite a few different lenders and nobody seems to be flexible or want to help make the transition slightly easier in paying these loans off. They just keep saying it’s a private loan. There are no other repayment options. They all sound like robots and don’t seem to care at all. What other options are out there?