Who Is Doing the Most Student Loan Defaulting?

: Chris Lee Law Firm

  Filed under: Student Loans

student loan, money, bankruptcy, attorney,When you take a step back and consider all the information that is encompassed by the student loan debacle that is currently underway in the U.S., you would not be faulted for thinking that the biggest loan balances are the ones most likely to suffer default. After all, coming out of school with 100k in student loan debt MUST be harder to deal with than coming out with a mere 4-5K worth of debt right? Well, actually you would be mistaken.

Recent research has shown that the default rates are the exact opposite of what most would consider the reality. Students with the lowest amount of overall student loan debt are defaulting at a rate that is almost but not quite double what the students with the highest amount of debt are doing. Why is this you may ask? The prime reason is that the majority of students who leave with most debt are graduates of a good 4 year program that leaves them in the position to secure a job in a market that pays significantly more than the jobs offered to the graduate of a shorter duration, for-profit college course.

Another major factor in why the lowest debt holders are defaulting more is the fact that many of the individuals who are holding less than 5K in debt have never completed the courses they enrolled in and thus cannot find the suitable employment they had hoped to accomplish.

Since they did not finish the course or degree, their debt burden is smaller as the funding was never completed yet they have no hope of getting the job they were taking the course to get resulting in a larger percentage defaulting on the loans.  No matter what the reason, the staggering number of defaults and of loan debt outstanding overall is a task that the new President is going to have to contemplate during their first months in office.

If you are having problems dealing with your student loans then seek out the services of an experienced student loan debt relief attorney. A strong Dallas bankruptcy attorney can help asses your situation and help you choose the right path of debt relief.


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