Student Loan Debt in the United States
Student loan debt in the United States is at crisis point; as at the beginning of 2020, approximately 45 million borrowers collectively owed in excess of $1.5 trillion dollars in student loan debt. Just as alarming is the fact that approximately 11% of borrowers are 90 days or more delinquent or in default. Student loan debt is second only to mortgages in terms of the highest consumer debt category; it is larger than auto loan debt, and over $500 billion larger than total credit card debt. The cost of financing a college education is creating an ever-increasing financial burden on a significant portion of the population, and the situation is steadily getting worse. It’s disappointing to realize that in essence, borrowers are being financially penalized, potentially indefinitely, for choosing to become educated.
Are You Having Problems With Student Loan Debt?
Student loans in the United States can often feel like a heavy, life-long burden due to high-interest rates, fees, and never-ending payments.
Important aspects of the loan such as interest accrued while in school, the consequences of repayment holidays, additional borrowing, fluctuating interest rates, etc. are often not clearly explained or buried deep in the small fine print.
Though the tendency is to be grateful for qualifying for any student loan in the first instance, it’s always a good idea to explore all loan options, thoroughly review the terms and conditions of the loan upfront and regularly review loan statements, etc. to determine whether the situation can be improved.
Whether you’re about to take out a student loan, already have one and are studying, or are working and looking to pay off your loan ASAP, Life Streamliner is ready, willing, and able to help.
Managing Your Student Loan Debt
Left unattended and unmanaged, student loan debt can be financially and emotionally crippling. As humans, we often ignore and defer uninteresting and / or overwhelming situations;
Unfortunately, this is exactly the opposite of what’s needed when it comes to student loans and similar debts.
The best thing to do is to invest the time to understand the loan and its mechanics, seek expert advice on the options available to pay off the loan, and make an active, conscious and informed decision to commit to a course of action. The most difficult step in addressing this issue is the first step – deciding to do something about it; if you are reading this, you’ve already made significant progress in the right direction.
LOOKING FOR STUDENT LOAN DEBT RELIEF?
Relief from student loan debt can come in many forms, which can include refinancing, debt forgiveness programs, employer-based repayment acceleration schemes, etc. When it comes to what option is best, there is no one-size-fits-all approach. Life circumstances (whether the borrower is married, has children, plans to travel, is currently working, etc.) can all influence what option is right for a given person at a given time. Having clear goals, understanding the pros and cons of the current loan, what options are available (as well as the pros and cons of each option), and being fully informed of the consequences and repercussions of each approach are just a few of the central things to be taken into account in the decision making process. Life Streamliner specializes in quickly and efficiently understanding a client’s situation, identifying desired goals, and setting out the available options in a clear, simple, and straightforward way. Life Streamliner stands shoulder to shoulder with each client so that they are empowered to make an informed decision, take action, and continue to apply the skills learned in the course of taking the action to optimize and improve various aspects of their everyday lives.
STUDENT LOAN FAQ
How Much Student Loan Debt Is Average?
The average student loan debt in the United States is approximately $35,000, with an average monthly payment of around $350. At an interest rate of 4.5%, repaid over 30 years, student loan borrowers will pay back roughly twice the amount they borrow and be 55 years. The average borrower will take 18.5 years to pay off their student loan, and be 45 years old when it is paid off. Alarmingly, 3 million Americans over the age of 60 still have student loans.
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