In our previous posts, we have talked enough about student loan debt. As long as the university tuition fees increase year by year, both the government and the private organizations install several programs to facilitate the financing of studies. Around the US you could see billions of students taken the loan, having a variety of loan programs, like PLUS loans and PSLF, etc. But not everybody is happy. You can see many organizations misusing their authority in paying an immense amount of loan, but at the end students end up with never-ending payback programs. The government introduced several forgiveness programs to aid student loan debt and many specific programs like Military education benefits.
All of those are targeted to ease the process which borrowers took many years to be free of student loans. To depict the scene more thoroughly I will write about student debt statistics in 2019 and their influence in past years.
Average student loan debt facts
According to the latest statistics, total student debts of Americans are $1.56 trillion. Lately, Donald Trump, economically the most successful of the US, announced that the budget of the government would be $4.746 trillion. It means that the total student debt is equal to almost one-third of the budget. This rate was $1.52 trillion in 2018. Moreover, the $1.56 trillion was borrowed by 44.7 million of the total US population. It means roughly every borrower took approximately $35.000. This number is slightly lower than the average salary, $44.546 per year. These numbers represent how devastating the situation with student loan debt is. The data, obtained by the Fed, illustrates that 11.5% of all student loans are not paid in its time, with the financial terms, they are delinquent.
Each student averagely can pay $394 per loan. The Fed took a survey, and 94% of people who took part in the study responded that they have debts because of student loans. 20% of respondents said that their loan debt is because of credit cards. I think it is essential to note in that point that, different loan refinancing or loan consolidating branches offer a particular payment method with debit cards.
After you are instructed and obtained a debit card to pay your loans automatically, will not only ease the company’s works but you will not anymore worry about late payments because the debit card helps you to pay your loan in time, including interest rates.
Thus neither company thinks about how to fine you, nor you are not sitting on the fence and thinking to pay or not. In 2016, the federal reserve announced the amount of student loan debt according to ages. It is interesting that more than 34% of people over 60 years have graduate education debt. This is another proof of how a university degree makes people miserable instead of helping them to find happiness ).
Another detail that needs to be highlighted is different forms of debts. The Fed said, more than 93% of debt holders have a student loan. The second place in the list is credit card debt which was only 20% of credit card owners have an obligation. This does not only create doubt about the efficiency of the university degree but also gives us an insight into how difficult is the situation.
Other facts on student loans that will shock you
The graph which illustrates student loan debt amount and years was always is steep inclining. According to the chart, in 2003 total student debts were around $200 billion and in 2005 this was slightly under $400 billion. Guess what the number for 2018 was? Yes, $1400 billion. This shows that in every year $80 billion additional debts were recorded.
The Forbes anticipated that in 2023, the amount of student loan debt would increase in an extent that nearly 40% of borrowers will not be able to pay in time; they will default their loans. Other resources unveiled more shocking numbers such as almost 65% of total graduates had a loan debt in 2017. Averagely, each of them owed $28.650 for their degree. Some political figures come up with mottos of “free education for all” like Bernie Sanders. I think this is an impactful technique, not just for Bernie Sanders to run for the presidency, but for the people who already think free education is just a dream.
The Atlantic says that in 2003 there were many graduate schools free of charge. “The situation started to change after 2006” Adam Harris, the reporter in the Atlantic made a statement. It is not the secret for anyone that state is giving up on the way to financing studies. Instead, private companies help people. But this help does not commiserate of people, instead becomes a future burden in their way to make a home.
Debts according to the loan types
In our articles, we informed you about various kinds of loan forgiveness, loan repayment, loan discharging, private loan refinancing and consolidation programs. In every single article, we are intuitively giving you as much information as possible, intending to hinder the way of further delinquency. But the truth is that people are in such a bad situation that without any fraud they are still in the depth of debts.
The Public Service Loan Forgiveness or PSLF in short. This program attracts many people to aid them in funding. The statistics showed that 890516 students borrowed from the PSLF. 1.7 million people stroke for the Forgiveness program and only 55 people gained the chance of forgiveness at the end. The number shows how fierce the competition is and at the same time how little the government encourages companies and launch new programs as an aid for the students.
General loan types
As you learn from our posts, there are two types of Stafford Loans. This loan is a federal loan as well and has been attracted considerable interest. Subsidized Stafford Loan was implemented to 29.6 million people, by giving them $277.5 billion. The Unsubsidized Stafford loan gave up on $489.6 billion permanently and made 28.7 million people dependent. Parents are another target for loans. There are specific programs designed for the sake of seeing parents in debt, called Parent PLUS loans. 3.6 million unique recipients took student loan debt, and the total amount they owed is $89.9 billion. Grad PLUS loans are designed for graduate students and $67 million borrowed by 1.3 million borrowers.