Further steps must be taken in order to guarantee future generations access to affordable education without crippling debt burdens. Student loan debt is an issue affecting millions of Americans, yet initiatives like income-driven repayment plans and loan forgiveness programs do little to address it. Furthermore, many borrowers experience financial issues which prevent them from meeting loan payments on time, leading to default and further aggravating the situation. Borrowers could face interest rates of 4-7 percent over the life of their loan, which could quickly add thousands of dollars in debt. Student loan interest rates can be costly. Over the last decade, college costs have seen significant hikes – over 25% overall over inflation and income growth! Students needing additional loans in order to afford their education are forced to take out extra loans – increasing debt levels considerably.
#Loans for past due tuition drivers#
Tuition increases are one of the primary drivers behind student loan debt issues. Over 44 million borrowers are responsible for this debt with each borrower typically owing around $32,000 on average. Statistics released in 2021 show that outstanding student loan debt in the US had hit an astounding $1.7 trillion as of 2021, setting new records in debt accumulation. Though student loans can provide essential funding, they also carry a significant debt load that could potentially impact the future financial plans of the borrower. Student Loan Statistics: Student loans provide one form of financial aid that assists students in funding their education: both undergraduate and graduate students are eligible to apply for loans offered by government-backed and commercial lenders.
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