Today more graduates are leaving college with debt. Student loan debts are growing each year, along with the default rate. Too many graduates are finding the job market less than lucrative and the result is financial hardship over making student loan debt payments. However, it isn’t just graduates that are being affected by student loan debt default, but the economy as a whole.
According to an article in TIME magazine, the $1.2 trillion student loan debt balance is hindering economic growth. With the average balance per graduate just under $30,000 student loan debt is preventing many graduates from obtaining future loans that are vital for economic progress.
Car loans and mortgages are now becoming a distant idea for many graduates as they struggle to keep up with student loan debt payments and make ends meet for essential daily living expenses. Unknowingly, the student loan lending industry has gone from the idea of making it more possible to help kids attend college and get a better job to being financially strapped to years of high payments with the inability to even get a haircut or see a movie.
While the financial hardship may not be as extreme for some as it is for others it still presents a serious problem. If graduates can’t find relief in Texas bankruptcy from their student loan debts, how far reaching could the negative impact on other lending markets like cars and homes could it go? Experts are growing increasingly concerned about the potential for growth in this country if graduates can’t find some way to relieve or at least balance their student loan debt obligations.