In 2000, we witnessed the burst of the dotCom bubble. In 2006, the housing bubble collapsed, and very soon the U.S. may undergo a collapse of the student loan bubble if no corrective action is taken. Americans are burdened by more student debt than ever before and the Chris Wesner Law Firm is calling for relief.
How Bad Is Student Loan Debt?
College students owe over $1.3 trillion in student loan debt, spread out across roughly 44 million borrowers. The average student that graduated in 2016 had $37,172 in debt. Worse yet, the future does not look any brighter for a student’s wallet. The average amount of debt per student has grown 6% in the last year. Furthermore, Marketwatch has estimated that America’s total student loan debt increases at a rate of over $2,000 per second.
As debt continues to grow students have fallen further behind on their payments. More than 40% of Americans who borrowed from the government’s main student loan program are either no longer making payments or are behind on monthly payments. Roughly 1 in 6 borrowers have defaulted on their loans and are suffering the consequences. The consequences of defaulting include:
- Damages to your credit score
- Wage garnishments
- Tax refund withholding
- Loss of financial aid eligibility
In most cases, the harsh penalties that accompany defaulting on student debt can take several years to recover from. It’s an alarming reality considering a growing number of students are defaulting on their loans. Ultimately, penalizing or failing to aid students in debt relief is counterproductive to the progression of American society. In a rapidly advancing world, postsecondary degree attainment is crucial for the U.S. workforce to remain economically competitive.
What Can We Do To Fix This?
To combat the collapse of the student loan bubble students will need all of the help they can get. That is precisely why the Chris Wesner Law Firm is taking action. Each and every day we help individuals through the unpleasant process of filing for bankruptcy. It’s disheartening to see hardworking families and individuals crippled by debt. It’s even more disheartening to see individuals have to struggle with debt at such a young age. We’re looking to help as many students as we can, which is why we’ve compiled the following student debt resources.
- Student Debt Calculator
- Student Loan Comparison Tool
- Student Loan Payback Playbook
- How To Discharge Student Loans In Bankruptcy
In addition to the following resources, the Chris Wesner Law Firm will be providing hardworking students with scholarship opportunities and rallying to petition for an increase in national Pell Grants. Stay tuned in the coming months for further information on both the scholarship and the petition.