Student Loan Debt Continues to Spiral Out of ControlPosted by William on Jun 1, 2012 in Bankruptcy, Consumer Debt, Debt Collections Defense, News | 0 comments
For some time now, the government has subsidized college education with both direct funding and low-interest student loans, and our current student loan debt crisis is a direct result of this subsidization. A recent study has shown that approximately 40% of all Americans have college degrees, which is a stark increase from the mere 5% of all Americans back in the 1940s.
What these statistics reveal to us is that we are now a society where a college education is becoming more commonplace. However, what the statistics fail to reveal is the fact that to get this education, many students (if not a majority) had to borrow obscene amounts of money. A recent study has found that the average student loan debt is around $25,000, but that figure is most applicable to those who graduate with a bachelors degree. For those who go on to attain higher degrees, they find themselves with student loan debt in the six-figures, which is sometimes well above the $100,000 mark. Unfortunately, for many of these new college graduates, finding a job has become increasingly more difficult.
Another recent study has shown that there is roughly $1 trillion in student loans outstanding at the moment. This debt is similar to the mortgage debts that have ballooned to outrageous levels and ultimately caused the recent downfall of the housing market.
A variety of factors have played a pivotal role in the uptick of college graduates. In particular, colleges and universities are given huge incentives by the government to increase student enrollment, which includes government backed loans and subsidies where student tuition is paid upfront. Even with increased enrollment, colleges and universities have astronomically increased the cost of a college education. At the same time, much cheaper alternatives to college like vocational education and apprenticeships has been given a bad rap.
Clearly, students are committing themselves to higher and higher lifelong debt, and many are unable to keep up with these large commitments in this struggling economy where jobs are harder to come by.
An experienced consumer debt attorney can help you weigh your options and help you find a practical solution to your financial obligations. Let an experienced debt relief attorney help you today!