Unpaid student loans and prospective debt relief for the masses
While families all throughout the state of Florida and beyond are facing serious financial difficulties, there is evidence to suggest that an entire demographic of debtors has emerged across the U. S. that may influence politics and the economy for years to come. For the majority of people that have accumulated large amounts of student loan debt Chapter 7 bankruptcy may not be an option. That is not to say, however, that debt relief is not achievable.
It is estimated that 15 percent of individuals that have taken out student loans default on those loans in less than four years, and that student loan debt in general has reached an all-time high. Because of the excessive amount of student loans Americans between the ages of 20 and 30 years old are carrying, many people within the age group are changing their lifestyle and spending habits. For instance, countless people have been forced to delay major life changes like buying a car or moving out, and some are even choosing specialty fields of work to help pay off their high debts.
Given that the number of Americans with student loan debt has reach around 40 million, organizations and politicians alike are taking note and proposing changes. One option to provide some level of debt relief to millions of Americans is refinancing student loans. While not everyone may qualify for refinancing, over $300 billion could potentially be resolved with the process. Another possibility is forcing colleges and universities and/or students to prove eligibility for loans.
With so many people, and voters, that can benefit from financial assistance, it may only be a matter of time before more banks and legislatures address mounting issues over unpaid student loans.
Source: USA Today, “The long-term impact of student-loan debt,” Pooja Bhatia, March 3, 2014