It’s no surprise that student loan debt has grown out of control with 1 in 4 Americans carrying a balance with no end in sight to this $1.5 trillion problem. After all, a Forbes analysis from this year showed that the average college graduate from the Class of 2017 left school with $28,650 in unpaid federal and private student loans. More than 44 million borrowers also owe their share, with more than 1.3 million owing six figures or more on their loans. After a while, statistics blur into just a bunch of charts and numbers!
However each one of those numbers has a story--a story we hear every day when we talk with borrowers and know first-hand what they go through. And it’s just not a “Millennial problem”…its everyone across the board with oppressive student loan debt, some in their 40’s and 50’s, for themselves, and/or Parent Plus loans for their kids.
Life happens and many people can’t finish school or can't find a job in the career they got their degree in. Many schools weren’t accredited and shut down or went out of business, and now these people are stuck trying to pay back Federal loans that they took out when they were 19 years old. They are caught up in a never-ending trap that comes back to haunt them. When they go into default, they find they are paying for something they never used. Eventually payments will be forcibly taken from them by IRS tax refund intercept and/or wage garnishment.
Scroll down to read about the Default Trap.