As the student loan debt industry reaches new heights of over one trillion dollars new information is surfacing as to the far reaching effects this debt burden is having on the economy and consumers. As the average graduate walks the stage with some $25,000 or more in student loan debt, the hardship these debt payments are placing are becoming more problematic every day.
Economists are growing increasingly concerned over the negative impact student loan debt. Not only are more borrowers in default than ever before, the rates of personal bankruptcy filings and the losing of assets is more commonplace simply because people cannot afford to keep up with their payments each month. From severe credit damage over default to wage garnishment to collect, many borrowers are finding themselves upside down and at the risk of their financial futures. It is predicted that if the student loan debt problems continue there will be a wave of consumers unable to borrow car or mortgage loans because of their prior student loan debt troubles.
While preplanning strategies for college such as scholarships and grants may have long passed for you, there are still options available to help you with your student loan problems. There are options for lowering your monthly payment through interest rate reductions or income based repayment plans. You can consolidate your loans into a lower monthly payment or even have your loan forgiven through the government’s loan forgiveness for public service employees.