If you’re 90 days late on your student loan bills, don’t worry, you have company.
The Federal Reserve estimates that over 11 percent of all student loan debt is delinquent. Compare that to delinquency rates of mortgages, credit cards and car loans, it’s easy to see that paying down student debt isn’t quite as high on the list of priorities for Americans.
I get it. It’s not like the government can repossess your degree or get you fired from your job. They can garnish your wages if the loan happens to be federal, but private student loan lenders are shit out of luck when it comes to dealing with delinquent borrowers.
American student loan debt has now soared to over $1.2 trillion dollars. That’s more than the government spends on welfare each year. Why is that number so high? Well, student loan debt cannot be forgiven in bankruptcy.. You owe that money no matter what. It follows you wherever you go. Student loan debt is basically herpes.
There’s no equity in student loans except for the borrower’s credit score, which can be repaired over time. In the grand scheme, what’s more important, keeping a roof over your head and a car in your garage or paying off your gaudy student loan debt on time? Thought so.
I’m not saying people don’t give a shit about their student loans, but if there’s a month where I have to choose which bill to put off until next month, it’s my student loan nine out of ten times. Have I gone 90 days without paying it? Almost, but that was one time when I changed banks and “forgot” about the whole thing. I swear. Let me just check with my bank real quick. This sounds like a problem on their end…(click).
[via Washington Post]