More

    The Long Road to the Student Loan Debt Crisis

    Want to Earn Some Extra Money?

    • SurveyJunkie: Earn up to $50 per survey with one of the highest-paying survey sites on the web. Join SurveyJunkie Now
    • Mistplay: Earning money by playing games on your phone sounds like a dream. But this app really pays you for playing new games with cash rewards. Download Mistplay for Free (Android only).
    • Robinhood: This investing app lets you trade stocks and do everything for free and takes no fees — ever. Better yet, if you join through this link you can get a free stock like Apple, Ford, or Sprint when you join (must complete signup).

    Analysis of the recent Department of Education (DOE) data shows that only 56% of borrowers are paying back their student loans, while 32% of borrowers are either postponing payment or not paying at all. Experian analyzed data from the Department of Education (DOE) to see how borrowers are managing their student loan debt.

     Here are some of the findings:

    • $722 billion (56%) is in repayment as of Q3 2019.
    • $127 billion (9.8%) is currently in deferment.
    • $129 billion (10%) is currently in forbearance.
    • $155 billion (12%) is currently in default.
    • 8.8% of people with student loan debt are still in school.

    The student loan debt crisis is growing and interest rates on these loans continue to rise. Is your degree worth the excess of student loan debt you incur?


    Want free money?

    • Aspiration: Want to get spotted a $100 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $100 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

    I feel for those with high student loan debt sometimes reaching close to $100,000. We all know that one person was sold the college dream and have $80,00-$100,000 in loans and now working jobs that don’t even utilize their prestigious degrees.

    Crippling student loan debt is a serious problem; Americans owed nearly US $1.6 trillion in student loan debt as of October 2019, more than three times the amount of debt from just a decade ago.

    Student Loan Statistics (Source Forbes):

    • Total Student Loan Debt: $1.52 trillion
    • Total U.S. Borrowers With Student Loan Debt: 44.2 million
    • Student Loan Delinquency Or Default Rate: 10.7% (90+ days delinquent)
    • Total Increase In Student Loan Debt In Most Recent Quarter: $29 billion
    • New Delinquent Balances (30+ days): $32.6 billion

    And the states with the most debt are staggering:

    student loan debt crisis
    Source: Enterprise Data Warehouse

    What’s the Real Return on Your Student Loan Debt?

    In this country, it is ingrained in our brains at a very young age that it is either university or you will be working at McDonald’s. Generations before us, or our parent’s generations, there were jobs all over the board to be had.

    Return on this college degree investment, back when our parents graduated made it a worthwhile endeavor. Now there are more college graduates than employment opportunities in every industry.

    BLS predicts that between 2012 and 2022, the U.S. will see a net increase of 15,628,000 jobs. But of that number, only 4,230,500 will require a minimum of a college degree. Crippling student loans would only be worthwhile if you make sure you have a job offer lined up after college. Private student loan companies hand out loans to anyone with a pulse, and interest rates are more than 4%.

    These rates increase year after year, not to mention that colleges and universities increase tuition 6% year after year. Tuitions have risen across the board 1000% by 1978. Colleges offer a multitude of majors with virtually no employable opportunities, colleges offer new editions textbooks every semester just to take more money out of your pocket.

    Higher education has become one of the most profitable business models in the country. The fact that everyone is basically entitled a student loan, some of which do not have the ability to pay after college remains me of the subprime mortgage crisis. This is basically the way it is designed, the trillion-dollar debt is all by design. The majority of college students graduating are enslaved to their debts, being forced to postpone a costly wedding, buying a home, and children.

    Got Student Loans? You Have Options

    The silver lining to this story is that more millennials are pursuing higher education, even if they are taking out loans to do so. Some economists are troubled by the fact that fewer people under 30 are buying homes and other goods as more are paying for college, but higher education is, on the whole, a solid place to put your money.

    In 2017, the median earnings for young adults with bachelor’s degrees were 50 percent higher than those of their counterparts with high school diplomas. But for many members of Generation Debt, the benefits of having a diploma may seem a long way off.

    If you want to learn more about your student loan options, here are some good student loan resources to consider:

    Want free money?

    • Robinhood is a free investing app for your phone. I really mean free all around – free to join and they don’t charge any fees to buy or sell the stock. You can get a share of stock like Apple, Ford, or Sprint for free when you join through this link. The value of the free share may be anywhere between $2.50 and $500 and fluctuates based on market movements. You’ve got nothing to lose.

    Want to Earn Extra Money Online Right Now?

    AppApp
    aspirationGet a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.

    CLAIM $100 BONUS
    bbvaWant to save $144 a year for free? Simply sign up for a new checking account and your yearly savings really add up since there's no monthly service charge. Then just relax while this legit bank saves you $144 a year. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

    COLLECT $200 CASH BONUS
    robinhoodThis investing app lets you trade stocks and do everything for free and takes no fees — ever. Better yet, if you join before 8/31/20 you can get a free stock like Apple, Ford, or Sprint when you join (must complete signup).

    CLAIM FREE STOCK
    truebillTruebill delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.

    LOWER BILLS W/ TRUEBILL
    wikibuyAdd the Wikibuy extension to your browser, and start racking up the savings with this free online shopping tool.

    ADD BROWSER PLUGIN