Being Unable To Pay Back Student Loans Back Has Become The New Normal

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Being Unable To Pay Back Student Loans Back Has Become The New Normal

 

The number of students who are unable to pay back their college loans is skyrocketing.

 

According to the U.S. Department of Education, at least half of the students at 1,000 colleges and trade schools have defaulted or failed to pay down even $1 of their principal loan within seven years.

 

Suzanne Martindale of Consumers Union said, “It wasn’t surprising because we hear all too often from students and families that they are struggling.”

 

Even so, the numbers are unprecedented.

 

Martindale said, “This is really a repayment crisis.”

 

San Francisco State University graduate student Charlotte Hummer says struggling to pay off student debt is just normal these days.

 

Hummer said she thinks about her student loans quite a bit.

 

She said, “Part of getting a degree — getting an education — is realizing you’re going to be in debt for most of the rest of your life.”

 

But Martindale says the payback problem is made worse by loan servicing companies like Navient, which was charged Wednesday with failing to help students manage their payments.

 

“The servicing company wasn’t helping people with even the most basic information about repayment plans, about how to lower their payments…,” Martindale said.

 

And Hummer fear help isn’t on the way.

 

“It’s not going to improve. If anything — looking at the…political climate — it’s going to get a h*** of a lot worse,” Hummer said.

 

Navient is disputing the charges and says it “welcomes clear guidelines on student loan servicing standards.”

 

The company is the largest student loan servicing company in the nation.

 

Well what did they expect? That suddenly when these college graduates got out of college money would just fall in their laps so they could pay these loan payments back at near the same cost of buying a house would be?

 

No as usual, banks got greedy. Jobs are not paying what they did in yesteryear. Corporations are moving jobs overseas and moving overseas employees into what were once middle class jobs.

 

The result of all this is killing the economy. You can't just keep reducing what you will pay your employees nationwide and not realize it will eventually come home to roost when no one any longer has the money to buy your product.

 

Let me paint you a picture that makes sense. Used to be when the economy was great, college grads got a job and in a few years made good enough money to allow them to buy a new car. Then within a decade, enough money to finance the buying of a house. Both of those items are near impossible today.

 

A survey some years ago, showed that you can not rent a two bedroom apartment on a minimum wage job. So it took two minimum wage jobs, just to keep a roof over the head along with utilities. You see the result as people look to cut expenses and what's happening with Pay For View TV. Entertainment is the first expense cut as it is the easiest to give up. It's what is called the cord cutter movement. Then realize from every direction you are being gouged moneywise.

 

When you aren't able to buy a new car or a new house, all the other companies that made things for these don't make any money either. It's a chain of falling economics. Automakers are cutting back on employees, tire makers, wiring harness makers, and on and on. Those that sell housing assessories such as Curtains, heaters, air conditioners units, stoves, refridgerators, among the thousands of such companies don't sell the same amount of goods anymore.

 

The whole thing points right back at the 1% draining the economy. The 1% came out of the recession/depression; no one else did.