Student loan debt is a major problem in the United States, and is something the lawmakers promise that they are working on. However, in the meantime, it is causing many headaches for hardworking Americans who cannot afford to keep up with their student loan payments.
The cost of college and student loan debt is a hot topic in both the state and federal government. While many efforts are underway to reign in these costs and the burden of student loans, there are some things that students can do on a smaller scale to help their financial situation each day.
Last week, we mentioned how as the cost of higher education has soared in the United States, many parents and grandparents have offered to help their children or grandchildren pay the cost of tuition. One way parents and grandparents are doing this is by co-signing private student loans.
Countless individuals in Wisconsin struggle to make their student loan payments each month. While we often hear about student loan debt primarily affecting young people, in reality it's a problem facing a much larger demographic.
Many young Wisconsin residents may find themselves facing large balances on student loans upon graduation from college. With regard to student loans, those graduating now are a part of one of the most debt-ridden generations. The Federal Reserve Bank of New York reports that people under 40 currently hold nearly two-thirds of outstanding student loan debt. As a result, many of those who are struggling with debt are unable to take advantage of low interest rates to buy a home.
In the past, individuals and families struggling with debt were usually battling high credit card balances and interest rates. For the first time, student loans have taken the position of the number-one unsecured debt owed by Americans. According to the Federal Reserve Bank of New York, more than 11 percent of the $956 billion in current student loans are now in default. Credit card delinquency, on the other hand, has dropped in number for the last four years.