According to USA Today, it is. They report that tudent loan debt is the biggest economic threat our country is facing. There is more than $1.2 trillion in student loan debt, and millions of borrowers are in default or delinquent. As the author, Suze Orman from CNBC, points out “And while 6.7 million borrowers in repayment mode are delinquent, the sad fact is that many lenders aren’t exactly incentivized to work with borrowers.”
You may ask – why are lenders not incentivized to work with borrowers? The answer is that student loans cannot be discharged in bankruptcy. This means that lenders have the upper hand and don’t feel the need to work with borrowers who are struggling financially. Borrowers do not have many options except to just work with the lender on the lender’s terms.
Another reason lenders are not listening is that they are making a killing off these student loans, including the government. From 2007 to 2012, the government made $66 billion in profit from federal student loans. IN PROFIT.
If you are struggling to pay your student loans, there is one solution that actually works – private student loans can be settled at a substantial savings to the borrower. Contact an experienced attorney to learn more.
Author: Kevin Fallon McCarthy