Hey, you! Blog Reader, did you know that you can try and run from student debt, but you cannot hide from it? Did you know that debt collectors are using your inability to pay to their advantage? Everyone knows that America is considered the land of opportunity and possibilities. Similar to Andrew Carnegie, everyone wants their own rags to riches story. College is the perfect opportunity to transcend your economic status. This opportunity if far from perfect, instead it is a double edge sword. The glorious side is this sword is that you gain a college education and can use that education in the “real world.” The darker side of the sword is that you graduate with a substantial amount of debt that has accumulated.
Debt collectors are taking full advantage of the darker side of college. As former college students continue to struggle with paying back their loans, Student debt collectors are steadily increasing. According to Debt collectors are cashing in on student loans , about 1 in 6 borrowers end up defaulting on their loans and about 5.9 million people are at least 12 months behind on their loan payments. Right now there is about $76 billion dollars is defaulted loans. There is an unknown side of student debt that very little people know about. More students are borrowing money from the Federal Government than private lenders. Students don’t realize that the federal government is going to get their money back because they a variety of tools at their disposal. . The government is able to get $.80 cents per dollar compared to the $.20 cents per dollar for defaulted Credit Cards.
Now the big question! How do they get $.60 more cents per dollar more than credit card debt? The Federal government has the power to seize your tax refunds at the beginning of every year and garnish your paychecks. They allow different options to pay back your student loans which may appear glamorous, but they are all just a trap. Your credit will end up ruined before you even get a chance to grow roots in the “real world.” The government loves to give out student loans to students because they know they will never disappear. If you think that filing for bankruptcy will help this burden disappear then you are far from right. Good luck students on never loosing that ball and chain.
This article terrifies me because all of these facts are true. I will have to repay my student debt and I don’t like the feeling of never being relieved of them. Just be wary that student debt will never go away. Instead it is an avalanche that takes four years to create! Just when you think you are finally at the bottom of the mountain the avalanche of debt and life creates a road block. We will have to face our burden head on and deal with it and the debt collectors that are eager to call.