Student Debt On The Rise

In this day in age, people are desperately looking to education to secure their future and ensure job security. They look to colleges as a way to move up in the world and to start a new life. Due to this increasing competition, college students have to specialize more and receive higher degrees. Employees have to go back and take classes to be able to compete with the others entering the workforce. Because of this, more and more people have resorted to taking out student loans in order to pay for college, and college isn’t cheap.

They have the intention of paying the loans back once they have a job and are financially stable. This idea has caused student loans to rise to an all time high. Last year, the student loan debt rose to $100 billion for the first time. The total loan expenses are expected to go even higher. The Federal Reserve Bank of New York projects that loans will surpass $1 trillion this year. College students are now taking out two times what they were borrowing a decade ago.

The outstanding debt has doubled over the past five years. The credit card debt has an inverse relationship student loans. Credit card and home loan debts are going down while student loan debt is steadily increasing. It is important to be aware that home loans and credit card debts are not like student loans. Mortgages and credit card debt can be removed if bankruptcy is filed. That is not the case with student loans. Lenders now have the permission to make student loans less likely to be erased through defaults. This is important because it affects the future of our economy.

Other areas such as new car sales and home sales are being put on hold so that people can pay off student loans or other loans that cannot be discharged. The numbers of people who are defaulting on loans are increasing. That number has increased to 2.1% in the past two years. Many of these defaults are coming from the increase of for-profit schools that are online based. One example of this type of school is the University of Phoenix. The University of Phoenix gets 88% of its profits from governmental student loans. With more of these types schools coming into being, debt will continue to grow and our economy will be what suffers.

Rosenstein Law Group has the experienced staff that knows your struggles, and they are ready and waiting to help you find a solution. Their answers are straightforward, and their solutions are effective. At Rosenstein Law Group, they have people waiting 24 hours a day, every day to take your phone call. Their number is 480-248-7666. They are knowledgeable, skilled, and waiting for you to call so that they may help you through this time of hardship and back on the path to prosperity.

 

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