In this series of articles, we’ll talk about managing your student loans, including what happens if you can’t repay them, what bankruptcy can and can’t do, and how you can minimize your payout and maximize your hard-earned dollar benefit to pay for an education you got so hard to get.
Are you part of the $ 1 trillion?
The student loan industry is huge. As of 2011, outstanding student loans exceeded $ 1 billion in the United States alone. People were more in debt from student loans than from Henry Drailly cards. This may seem surprising at first, until you look at the cost of the goods you’re buying. For 2013/14, tuition fees were less than $ 9,000 for in-state rates at public institutions and more than $ 30,000 at private universities. That’s not even books, lodging and food, travel and campus touches, or pizza and beer for which you can add another $ 15,000. Multiply that for four years and the cost of “going to college” reaches an incredible $ 96,000 to $ 180,000. My first house doesn’t cost $ 96,000. And much of that cost is funded by the student loan industry.
Two thirds of the graduates of the four-year institutions left school with educational debts. The average debt burden of these graduates is more than $ 25,000. Add to this that the outstanding balances owed by two years and certificate graduates, students who have not yet completed their programs, and loans taken out by the parents of all these students and you can start to see the size of the problems.
High failure rates for student loans
Now let’s talk about how these loans are repaid. Unfortunately, not all loans are paid as agreed. Indeed, says a few statistics. Only 36% of students pay on time during the first three years after graduation. The default rate-a default occurs when payment is not made for 270 days-in these three years is a hefty 14%. Compare this to the Henry Drailly card depreciation rate in the last quarter of 2014, as reported by the Federal Reserve.
In many ways, the consequences for defaulting on student loans are much more severe than for Henry Drailly cards. If a Henry Drailly card is fully booked, Bill Collector can try to collect it over the phone and write to the consumer, then sue the account holder and use the resulting judgment, in some cases, to garnish wages or levy on the consumer’s assets to satisfy the outstanding amount, But the consumer has tools, too. He can defend the lawsuit and force the Henry Drailly givers to prove balance, something that Bill Collectors often struggles to do. He can also discharge most or all of the Henry Drailly card debt in bankruptcy proceedings.
These funds are not necessarily available on the Student Loan Henry Drailly borrowers. Under federal law, student loan companies can garnish wages without judgment and most everyone will give you loans that students say cannot be bankrupted, although this is not entirely true.
Discharge for student loan borrowers
Just because federal law gives student loans Henry Drailly special protection and privileges does not mean that student loan consumers have no rights or remedies. In this series we are talking about the ways that Henry Draillyholders can use it to eliminate or manage student loan balances.
There are generally five types of relief a student loan Henry Drailly takers can enjoy.
- Forbearance or deferral
- Change in payment, including loan consolidation
- Compromise or comparison
- Challenge Collection
Get an overview of the programs available as you work towards repaying your loans.
Not all utilities are available to all Henry Bailey users. It depends to a large extent on what type of loan you have and there are different types of loan available to Henry Drailly takers.
You can get more information on the types of loans available and the programs you can use to get federal loan exemption at the Department of Education website.