Student loan debt is crippling the future of countless young people in America, there is more than 12 trillion dollars owed in student debt at this time. Many students never even finish their schooling, only to head off into their disappointing career life saddled with crushing debt.
Well, some have refused to accept this fate.
Activists from the Debt Collective and students of the for-profit college named Corinthian Colleges, fought back and won in a major way early this year.
Not only did the students refuse to pay the predatory student loans, but the schools under the Corinthian College umbrella are shutting down after receiving very heavy fines from the U.S. Dept of Education for misrepresentation.
Here's a video with their explanation...
Sobering Facts About U.S. Debt:
- 77.5% of American Households are in debt.
- 62% of all bankruptcies are caused by a medical illness.
- Student loan tuition debt is over $1,000,000,000,000
- 1 in every 7 Americans is being pursued by a debt collector.
- The ratio of household debt to income is 154%
- 40% of indebted households have used credit cards to pay for basic living expenses.
Student Loan Debt Relief Options
If you are buried in student loan debt you have options for getting relief. There is no one-size-fits-all answer but doing your due diligence and research will help you free yourself from the burden of owing so much money. The U.S. government has set up the student loan forgiveness program, a plan for those whose federal student loan debt is higher than their annual income or even if your debt consumes a considerable chunk of your annual income you may be able to get relief. The government runs what it is called an "income-driven repayment plan". But as was mentioned by Forbes, student loan forgiveness is not without its own dangers.
There are also relatively new loan consolidation options through peer-to-peer lending companies like Prosper Marketplace and Lending Club. Student loan refinance rates can vary from bank to bank, but P2P loans are seen in a positive light because the rates are low and often you can pay off your high interest debt at lower cost.
Before you look to refinance student loan rates, make sure that you research all options. It makes no sense to put time and effort into getting your debt consolidated and missing out on better options that are right under your nose.