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Is Student Loan Debt Dragging the Economy Down?

student-loan-debt-economy

Student Loan Debt Major Impact on the Economy

Skyrocketing student loan debt over the past decade drags the economy. Currently student loan debt in America stands at $1.2 trillion. This does not include tuition paid by credit card or private loans from friends and family so actually student loan debt is much more than $1.2 trillion. Over this same decade of skyrocketing student loan debt student loan defaults have doubled. For an undergraduate degree the average student loan balance has risen from $15,000 to $27,000. This kind of debt postpones many normal economic activities such as home ownership, car ownership, consumer spending in general, and saving for retirement.

In addition those burdened by student loans are less likely to take chances like starting a business or entering a new challenging career. This great rise in borrowing troubles many economists who see student loans as the next bubble to burst. 11.3% of student loans are 90 days delinquent or longer. This delinquency is not related to the size of the student loan. Loans as low as $5000 are delinquent in the same proportion to loans that are much higher. The hardest hit groups are those in their 30s, in age group where typically people build wealth. This age group cannot buy the homes owned by the baby boomers.

Action plan: If you are burdened by high student loan debt contact a qualified debt settlement attorney today. Working with a qualified debt settlement attorney can likely result in greatly reduced original balances on student loan debt. This makes repayment not only possible but much faster. It’s time to build wealth, own a home, own a car, and plan for retirement.

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.