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 the economy.
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 (800) 996-9932.