Student Loan Crisis is Second Largest Household Debt
A recent article by Forbes indicates that student loans are the second-largest category of household debt in America behind mortgages. Student loans are at $1.4 trillion versus mortgages at $9 trillion.
In addition, costs related to student loans and college expenses has increased as well. From 2007 through 2017, college tuition costs jumped 63% and school housing to 51%, textbooks to 88%. If that is not a sign that education is big business, then I don’t know what it is.
The average student loan monthly payment is $351 and almost 45% of households have student loan debt. The effects of student loans will be felt in the long term as borrowers may delay making major purchases whether a house or a car.
While student loans lenders are flexible at times with their repayment plans, bankruptcy is virtually impossible.
With the student loan crisis and trillions of dollars in debt, lenders are looking for ways to capitalize. Wells Fargo is the latest to join the parade of lenders willing to refinance federal student loans.
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