Student Loan Debt is at an All Time High
The student loan debt in the US is now at $1.6 trillion and is continuing to rise. The primary factor for this is the slow repayment of these loans. This is according to a report released from Moody’s Investors Service, a credit rating agency. Although their research shows that over the past few years the cost of attending college relative to people’s incomes has stabilized, the amount of time it takes borrowers to pay back their student loan debt has increased. A shocking statistic they found was that only an average of 3% of student loans were paid off per year.
Why is Student Loan Repayment Slow?
On average, recent graduates are finding it difficult to land jobs with a stable income to begin paying back loans. Moody’s Investors Service also found that there has been a rise in income driven repayment plans. This type of repayment lowers the monthly rate based on a number of factors such as income and household size. Unfortunately, a lower monthly payment leads to a longer repayment period. Research shows that only a quarter of all student loan balances are on a schedule of 10 year repayment. Today, student debt is the second largest student loan debt category after home mortgages.
Mediator Debt Solutions has a Better Option
Student loans is affecting millions of people and is weighing on the overall economy of our country. Mediator Debt Solutions offers an easy way to help people become debt free. We have a simple four step process that is guaranteed to help you. First, we figure out the best debt relief option for you, all while giving you and overview of the different types of options. Once you decide on your preferred debt relief method, we create a special savings account for you as well as a 12-36 month plan to get you debt free. The next step is up to us, we begin negotiating with your creditors to lower the amount of debt you owe. Once a settlement is reached, your debt balance is lowered, and your special savings account is used to pay it off.
When it comes to student loans, however, we can also help. There are various programs available to people who have student loan debts that have become manageable burdens. Manageable meaning that you are reaching a stressful point financially when it comes to your debt but you have not fallen completely behind on your payments. Before you, reach out to us. We’d love to chat!