While the media focuses on mortgage, auto and unsecured loans, there is a growing group of people who are facing another type of loan: student loans. Recent studies have shown that there is about $730 billion in outstanding student-loan debt. Of that number, only about 40 percent is being repaid on time. The remaining 60 percent is a combination of borrowers who are either deferring payments or defaulting on them. The problem of the former 60 percent is a gro! wing concern in the market. How can this group be motivated to prioritize student loan debt? With a recessionary period still hanging over most Americans, it is a difficult time to demand consumers address their student loans.
The struggle to handle student loans
There is a catch-22 for recent graduates who got their educations for higher-paying careers. Though many targeted law or medicine as their perfect careers, now they are having a hard time finding jobs. Without finding jobs, paying back the higher cost of their education is next to impossible.
There are a growing number of consumers who are falling into this category, and the economy isn't doing much to help. When it comes to other forms of debt, there are some outs to help ease the strain. For example, mortgage payments can be negotiated or properties sold to ease the tension. Credit card debt can be paid off or eliminated in bankruptcy. Car loans can be eliminated via a discharge in bankruptcy, negotiation or payments, or if necessary, selling off the vehicle. Then there are student loans. There really is no such thing as getting rid of student loan debts. They can't be discharged in bankruptcy or negotiated down. The amount can't be touched and neither can the interest rate charged to hold them. That means that consumers are never going to find a way out of paying for their student loans without some legislative changes. ... click here to read the rest of the article titled "People with Unsecured Loans Have Options While Students Do Not"