Student loan debt statistics continue to shock. Just two years ago, the average student loan debt in America was estimated at about $27,000. Now, a recent study from Fidelity Investments
reveals that 70 percent of students who graduated college in 2013 borrowed money from various federal, state, and private sources to help pay for their education. And they left school with an average debt of $35,200. That's a 35 percent increase.
The Fidelity study also found that 50 percent of those 2013 graduates who had taken out student loans expressed surprise by just how much debt they had accumulated. That's another shocking statistic that clearly demonstrates just how difficult it is for many college-age students to visualize what their lives will be like when the borrowing phase of their student loans is over and the dreaded repayment phase begins. And that's not a good place to be.
The bottom line is that student loans are not optional arrangements between you and your lenders. They have to be repaid. They cannot be ignored or put off and federal law stipulates that they cannot even be discharged via bankruptcy
. If you default on your student loans you can have your tax refunds intercepted, a portion of your wages garnished, judgments or lawsuits issued against you or collection fees added to your loan balances – not to mention harassing calls and tactics from aggressive creditors.
That's why it's absolutely critical that if you are a student loan borrower, you learn how to manage...read more