Where Is All That Student Loan Money Going?

: Chris Lee Law Firm

  Filed under: Student Loans

student loan, money, bankruptcy, attorney,With the huge amount of discussion generated by the ongoing student loan crisis across the U.S., we wondered exactly how things have changed over the years and exactly where the bulk of the $1.2 TRILLION in student loan debt was going. The data compiled showed that the vast majority of new student loan debt is being generated by “for profit “schools rather than the trend at the turn of the century where “non-profit” schools made up the bulk. Of the top ten schools that were responsible for student loan accumulation in the year 2000, only a single school was considered a “for profit” entity and the other nine were more traditional “non-profit” colleges and universities.

Looking at the numbers today and we see a paradigm shift in the amount of student loans being generated at “for profit” schools with a staggering 8 out of 10 of the top student loan producing institutions being identified as such. The amount of debt accumulated by the top school according to data from 2014 was over 3 times the amount generated by ALL the schools combined in 2000.

Even allowing for inflation the numbers are truly mind boggling and shocking to say the least. Statistics also suggest that loan holders from 2 year, “for profit” schools are most likely to default on their debt. The fact that the amounts held by those two categories alone are over $90 BILLION is something to be very, very worried about.

The economic impact a default would have on the U.S is something few wish to think about but it is something we had better start planning for and soon. The writing is on the proverbial wall and we would all be advised to consider the implications before it is too late. If you are a student having problems with student debt be sure to seek out the advice of a student loan debt relief attorney.

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