Student Loans

It is commonly accepted that a college degree is viewed as necessary to being fully employable in today’s economy as well as to provide more options to pursue work that you are passionate about.  Higher education is crucial to improving skill levels, especially in the face of the rising cost of living and the employment gap across workers with varying education levels.  Due to rising tuition and costs, student loans play an increasingly important role in financing higher education.  Every new report on student loan debt is worse than the last. Total national debt is currently approaching $17 trillion, and $1 trillion is attributable to student loan debt.  Student debt has tripled since 2004 with a 70% increase in the number of borrowers and a 70% increase in the average balance per person.  Student borrowing exceeded the $100 billion threshold for the first time in 2010 and topped $1 trillion for the first time in 2011.  It now exceeds credit card debt in the U.S., which stands at about $798 billion.  Approximately 37 million Americans are contributing to the upward march of student loan borrowing.  The average student loan balance is $24,301.  Most striking among these statistics is that 17% of borrowers are more than 90 days delinquent on their student loan accounts.

Managing the cost of your education after graduation may often have a greater impact on your career than the actual college education you received.  Repaying student loans is a trying process, and the fallout from missing payments can last for decades, creating stress for both single individuals and young families.  These high levels of student debt delinquency reduce young borrowers’ ability to secure other types of credit and are associated with higher delinquency rates on other types of debt.  A graduate saddled with debt may put off major life choices like getting married, buying homes, and having kids.

Lost on the minds of many graduates is the exact amount and type of loans that were made to them, and the interest rates on the loans, until after the loans emerge from deferred status.  Many student loan borrowers have both private and federal student loans, and becoming familiar with the nature of the loans is vital for considering the best routes to address repayment, restructures, deferments, and in some cases, partial or full forgiveness of the debt.

The attorneys and paralegals at DelCotto Law Group are here to help and will meet with you to discuss your financial situation.  We are committed to reviewing all options with you so that you can decide how to best move forward with steps necessary to get your student loans under control so you can get back on your feet.