Student loan debt is a driving factor for our slowing economy. Without having the money to pay back, a borrower can default on their loan and hinder future purchases requiring credit. Below are four interesting facts about student loan debt.
How Many Student Loan Borrowers Struggle?
14 percent of those who have outstanding student loan debt are behind at least one payment. This adds up to approximately $85 billion total during the first five years of taking a student loan. About 41 percent of borrows are behind in their loan payment. With the current rise of people enrolling in school, one could say that shortly almost half of student loan borrowers will owe and will default on their student loan.
Who Struggles In Student Loan Payments The Most?
So who struggles the most in paying their student loan back? It is shown that those in their 40’s and those who attend a for-profit and public two-year institutions struggle the most in paying their loan back. Also, those that do not finish with their undergraduate degree default many a times on their loans as well. There are resources available to those that may need help paying their loan.
Why Do They Struggle?
There are many reasons we’ll find for students and prior students to have high student loan debts and defaulted loans. It all boils down to them not having the money, of course. Those that have it do pay their loans. However, the economy has left many without a job, either they didn’t have one before they started school or were laid off or fired. Some are part time workers not making ends meet and must provide for their families. You will also find those with other personal debts trying to establish paying those off.
How Is Student Debt Impacting Borrowers – and the U.S. Economy?
The National Center for Education Statistics show that those with a Bachelors degree do earn 114 percent more than those without high school diplomas and 50 percent more than those with just a high school diploma. Young adults with an annual salary averaging $45,000 have a bachelors degree. This however does indicate having a student loan could impact taking other debts like purchasing a home.