Millions of Americans are struggling under mountains of student loan debt,
often holding them back from their future prospects. Crippling debt is
putting people’s lives on hold, and is having serious effects on
With the continually rising costs of higher education across the nation,
many students not only struggle to make ends meet in college, but continue
to struggle for years after graduation as they work to pay off their loans.
According to federal data, personal earnings rise with higher levels of
education with a corresponding drop in unemployment, but this is becoming
increasingly difficult for those who may face decades of loan repayments
after graduation. It may take years before a person can reap the financial
benefits of their education at all, making many people question, is this worth it?
Millenials are currently being forced to delay landmark purchases, such
as homes or cars, as well as saving for retirement, because of their student
loan debts. Unfortunately, many 18 to 35-year-olds are also putting off
other major life events like getting married or having children until
their debts can be brought under control.
A report recently conducted by the Federal Reserve Bank of New York has
discovered that outstanding student loan balances staggeringly amount
to nearly $1.2 trillion, up from $78 billion a year ago. Additionally,
they found that over 11 percent of this debt is in default or delinquent
over 90 days. More than half of the individuals who participated in the
study complained that they didn’t receive enough information about
the financial risks involved with their loans, and ended up in situations
they didn’t foresee.
The graduating class of 2015 currently holds the record for the most indebted
class ever, with the average borrower owing an average of just over $35,000
in student loans. Even after adjusting for inflation, this number is more
than twice the amount the average graduate had to repay twenty years ago.
Struggling with debt? Learn what options are available to you by contacting
the legal team at Wadhwani & Shanfeld. Schedule your free consultation
by calling our Los Angeles firm at (899) 996-9932.