If you’re one of the growing number of persons becoming increasingly edgy about mushrooming student loan debt (perhaps your child has assumed a high amount of debt, or you, personally, are challenged by onerous repayment terms) and wondering just how serious of a problem student debt is becoming, consider this: According to a recent media article discussing education-related loans, about 17 percent of all borrowers are delinquent on their federal student loans.
That equates to many millions of people struggling mightily in their attempts to stay current on loan exactions — and failing.
And that, in turn, notes the above-cited story, has fostered “a potentially looming economic disaster.”
That fear of economic fallout is across a broad and national dimension, given that money otherwise allotted to things like home and car purchases, household furnishings and savings accounts is instead being paid back — sometimes, over decades — to lenders.
President Obama recently followed through on his so-called “personal mission” to reform the student loan industry by announcing a “Student Aid Bill of Rights” that includes a number of recommendations aimed at improving loan terms and conditions.
One central reform thrust focuses on the possible reform of bankruptcy law as applies to student loans. Under current law, and unlike other forms of debt (such as credit card exactions and medical bills), student loans are typically very difficult to discharge through the bankruptcy process.
Given the present mandate for new ideas, that could change.
The topic of student debt is obviously a top-shelf concern for regulators, business groups, economists and, of course, the many millions of debtors who are currently challenged by high monthly payouts.
Questions or concerning regarding onerous student loan exactions or other types of debt can be directed to a proven debt-relief attorney.