Student debt is a major issue in the United States. Most students cannot afford to pay for college on their own, as it could cost them over $100,000 just to go to a local school. As a general rule, the United States does not have tax-funded college options like the rest of the developed world.
What this means is that there are about 43.5 million people in the United States who hold $1.74 trillion in student loan debt. Other than mortgage loans, student loans are the biggest form of debt in the United States. The average monthly payment for a borrower is right around $337, although there are plenty of people trying to pay thousands of dollars per month.
So how many of them are missing these payments? It’s fairly common, with reports claiming that 15% of these students have fallen behind on paying off their loans. If 15% sounds like a small number, keep in mind that it represents around $261 billion worth of student loan debt.
Why don’t they pay and what can you do?
There are many reasons why students fail to pay back what they owe. Some of them can’t find employment, so it is simply unrealistic. Others have so many additional expenses that they can’t afford to pay student loans on top of it. Life gets very expensive and people have to make choices.
If you are owed money for these student loans, or if your lending company has numerous borrowers who are defaulting and falling behind on their payments, it can have a major financial impact on your business. It is crucial that you understand exactly what legal steps you can take to resolve the situation.
