DebtDoc Bankruptcy News Blog

Tuesday, 18 December 2018 16:18

Outstanding Student Loan Debt Reaches Record High

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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.

Federal Student Loan Portfolio by Aggregate Amount by BorrowerMany 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.

Federal Student Loan Portfolio by Age of BorrowerThe 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) 678-1134 to set up a free initial consultation.

Read 922 times Last modified on Tuesday, 03 March 2020 21:48
Chris Bush

With over 12 years of experience and thousands of cases as a consumer bankruptcy attorney, Chris Bush is on the cutting edge of Bankruptcy and Student Loan Law. Chris can assist you in untangling the options to find the best solution for your specific debt relief case.

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Clients with Student Loan Debt

Clients with Student Loans

Some information I need to evaluate your Student Loan options is contained in your National Student Loan Data System Report. Instructions for obtaining this report are available on my web site at sandiegostudentloanlawyer.com/nslds-report. Simply print/save the reports as a PDF, of all pages. Please DO NOT "DOWNLOAD" THE REPORT from the link - this creates a text file that is very difficult to read; please print the web page as a PDF file - the summary page of all loans AND the individual reports for each loan. Samples of these pages can be viewed by clicking the respective links in the previous sentence. I look forward to reviewing this report with you and assisting you with the management of your Student Loan debt.

I have prepared a brief questionnaire for you to fill out to provide me most of the information I will need. Please click this questionnaire link and provide me with the information listed. I would also like to see copies of your most recent pay stubs or other income information.

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