College Graduates, Welcome to Student Loan Debt City

Hey, new graduates! Welcome to Student Loan Debt City. The class of 2015 graduated with an average of $35,000 in student loan debt, and things are not looking much better for the class of 2016. The total student loan debt is 1.23 trillion as of the fourth quarter of 2015, with an 11.5 percent delinquency rate. While college education remains a good investment, with lower unemployment rates for those having a bachelor’s degree and a higher income, many are coming to regret their student loans even as they reap the benefits of their degrees.

It’s no secret that this generation has put off milestones such as marriage, home buying, and starting a family because of the amount of debt that they accrued out of the starting gate.President Obama recently announced the creation of a new website designed to give those repaying their student loans and option in five steps or less. There are also changes afoot in how loan servicers collect payments and manage the accounts of those with federal student loans. Unfortunately for those with private loans, there is little help out there except for the advice to reach out to your loan servicer and work out a graduated or extended repayment plan.

Your best option right out of the box, whether you have federal or private student loans is to get sound legal and financial advice. You want to do this before whatever grace period that you have expires, the payments kick in, and you find that you cannot possibly handle everything all at once. Everyone expects that young people will get in some degree of financial difficulty, it’s just part of growing up. However, starting out with a five-figure debt load for a degree that you need to get a career in order to pay off your student loans may not be the best way to start out.

There are options out there that are reasonable and affordable, that mean you will be able to pay down your debt sooner, save more money, and have the kind of life that you had hoped for when you decided to go to college in the first place. Consolidation is an often mentioned solution to problems with private student loan debt, and can take multiple loans and squeeze them down into a lump-sum with a single payment. If you decide that this is the route you want to take please contact our office and let us guide you to a reputable loan company and work out an arrangement that is in your best interest. Other options can include loan forgiveness, forbearance, and income-based repayment plans.

Whatever you do, do not let your loans get into default. There are options open to you that will keep you from having to scramble to catch up before you can get your financial house in order. Give us a call, consultations are free, and I know that we can help you.