Private Student Loan Debt Reaches $150 Billion | McCarthy Law PLC
July 25, 2012

Private Student Loan Debt Reaches $150 Billion

While that’s only a small fraction of the $1 trillion total student loan debt.  But consider this.  Of that $150 billion, $8.1 billion in private student loans are currently in default.   The following article discusses this issue and the aggressive nature of marketing used by private lenders, often pushing loans with higher interest rates than federal student loans.

https://money.cnn.com/2012/07/20/pf/college/private-student-loan-debt-cfpb/index.htm?iid=HP_River 

The article points out that lenders have since become more conservative in their approach, even lending more appropriate amounts which should help frivolous spending for non-educational needs (like pizza and beer).  But for those 850,000 individual private student loans that are now in default, you should know that you may be able to negotiate with your private lenders for a significant reduction on the balance claimed due.  If that sounds too daunting, consult with an attorney experienced in negotiating reductions in debts.   Even if bankruptcy isn’t an option for student loan debt, a debt settlement certainly is.

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