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Five Common Issues Surrounding Student Loans

Are you considering taking out a student loan, or are you already working toward paying one off? For many just on the brink of leaving high school, it may seem like a lot of headache and expense filling out college applications, deciding where to go depending on acceptance, and then trying to get student loans to begin with. The U.S. Department of Education states, however, that college graduates not only earn 66 percent more and have less chance of dealing with unemployment in their futures, but in just a few years, it’s predicted that two-thirds of jobs applied for will require a college degree.

 The reality is that we all know a college diploma is usually the best bet for carving out a promising career and income in the future, but what about all paying back those student loans--and what if something goes wrong or you decide to leave school before graduating? It’s important to know what you are getting into, and if you’ve already taken a loan out and are having trouble paying it, you may be interested to know more about some of the most common issues surrounding student loans today:

  1. Despite the outcry for more affordable secondary education, college tuition has only continued to increase. This puts more students in the position of needing student loans—and in higher amounts—with the average graduate looking forward to graduating with over $25,000-$30,000 in debt. Sometimes students are expected to begin paying this back while they are still in school, and other loans begin repayment after graduation. No matter the process, students should be sure they will be able to make that payment even if they don’t have a six-figure job right out of college.
  2. Many students do not ever get their diplomas for one reason or another and still must pay back the student loans. Today, 41 percent of college students are ditching the idea of the degree before they make it to the end of the four-year mark. That student loan, however, is much harder to ditch. For the college dropout who may be making much less than expected when they signed up for the student loan, paying it back may quickly become challenging. Graduate students tend to have a harder time as well, often with more debt upon them.
  3. Substantial numbers of those in debt for student loans are not paying them at all. With 40 percent in varying stages of delinquency, deferral, or default, there is $200 billion in student loans that is in the process of not getting paid. With one in six loans in default, this is obviously a system that is complicated and troubling—and one that does not seem to be working well in the end.
  4. Many graduates and non-graduates alike are unhappy with the education they received, along with the results which did not yield the income they expected. With this type of disappointment, debtors are often so resentful that they don’t pay back the loans, focusing on bills that are higher priority such as mortgages and car payments. There are also those who feel so ripped off that they don’t pay even when they perhaps could.
  5. There are several repayment programs, based on income, available through the government for student loans. Whether you choose from the standard repayment plan, the graduated repayment plan, or the extended repayment plan, you would need to go through your loan servicer.

 Are you currently having challenges paying student loans, becoming delinquent in your payments? It’s very important to avoid defaulting if you can. Contact us at Fitzgerald & Campbell, APLC. With decades of experience in helping clients navigate areas such as student loans and other debt issues, our attorneys can sit down with you and review your case. We are here to help!

 Call us today for a free consultation at (855) 709-5788, or email us at 

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About the Author
Gregory Fitzgerald
Posted - 01/05/2017 | California