The student loan debt crisis in the United States has been steadily worsening over the past 10 years. This month the total outstanding student debt reach a staggering high of $1.465 trillion! Data from the New York Federal Reserve indicates that the unrelenting climb in student loan debt shows no signs of slowing.
Many student loan borrowers are under significant financial stress due to excessive student loan burden. More than 2.7 million graduates owe more than $100,000 in federally guaranteed loans, with about 700,000 owing more than $200,000. The breakdown by age of borrower shows that many older Americans are carrying student loan debt into retirement while those in the 50-61 age group owe $213.6 billion. The growth of aggregate amount owned isn’t the only alarming factor, the rate of aggregate growth is also worrisome. In one year the “over age of 50” group had the aggregate amount owed increase by $28.8 billion, a 11.6% increase.
The Bloomberg article revealed that student loans issued about six years ago have the highest cumulative loss percentage compared to any other year since the financial crisis ended in 2009. Students who took loans in 2012 have demonstrated a reduced ability to make their monthly payments compared to students who obtained loans just before or after, despite a relatively equal time to pay them down. Most borrowers in this group are now 24-33 years of age and entered the labor force when the unemployment rate was twice as high as it is today. Additionally, the time it took to find a job in 2012 was three times greater than today. These factors apparently have a long-lasting effect on the ability of borrowers to repay their student loans.
The student loan debt burden has become a crisis for many higher education graduates that relied on the Federal Government and the Department of Education to fund their education. The problem spans all adult age groups and levels of education. Fortunately, there is professional assistance provided by knowledgeable, trained and experienced attorneys who specialize in student loan law. We are proud to be part of that group and want to help student loan borrowers understand the options and pathways available to help them find relief from overwhelming debt. Please call a San Diego Student Loan Lawyer at (619) 295-3322to set up a free initial consultation.