04 Jun The True Number of Student Loan Defaults are Hidden by Jason Spencer Dallas
The economic crisis in the US just seems to be getting worse day by day according to Jason Spencer Dallas of Student Loan Relief in Dallas Texas. Something always seems to be appearing that will do more damage to the economy. The next thing that will hurt is student loans. Students who have taken out loans to pay for their education are faced with a tough economic situation upon graduation. They just cannot find jobs to pay for their loans and many have defaulted. However, the exact amount of students that have defaulted on their student loans may not be identified as lending institutions offer deferment and forbearance options.
Student loans are time bombs just ready to explode. Unfortunately, the timer is hidden as the true number of students who have actually defaulted on their loans is hidden by deferment and forbearance options. Companies like Student Loan Relief can provide additional options.
Students and their co-signatories on the student loan have little or no options left for them should they incur problems with their loans. Some private lenders may offer a reduced monthly payment scheme if the student or the co-signer can still come up with an amount that they can pay towards the loan.
If the student or the co-signer cannot pay for the loan at all, then the only other option left to them that some lenders may offer is deferment or forbearance. Unfortunately, these options will add significant amounts to the loan repayment amount due to fees.
If deferment and forbearance options are applied on the loan, then the loan has not gone into default. This situation hides the truth for an extended period of time.
The US economy will be greatly affected by student loans. The outstanding debt on student loans has already exceeded $1 trillion. The economy is hurting and this situation has only made it worse.
Students cannot be blamed as they have done everything in their capacity to complete their education in order to find good employment opportunities. Unfortunately, these employment opportunities are almost non-existent.
If students are unable to find jobs immediately after graduation, then they will not be able to pay for their loans. Those who have managed to land a job will have to set aside a huge chunk of their monthly earnings to pay for the loan.
If more and more of America’s younger generation fall into this situation, then businesses that look forward to the young generation to improve their sales, will in fact, not have anything to look forward to.
The urgency of the matter is somewhat hidden by the deferment and forbearance options. The students may have been given more time to look for jobs to repay their loans, but then they will also end up with additional fees.
It is very unfortunate that these students have no other options that are available to them should they have problems finding jobs. Federal student loans have a number of options, but private student loans have become a problem since students are left at the mercy of the lending institution. Deferment and forbearance are their only options.
by Jason Spencer Dallas