There’s no doubt that getting a college degree is a big accomplishment. Thousands of hours studying, an enormous amount of stress, and endless hard work, and at the end of the tunnel, you get a rewarding job that will pay the bills and you begin your life in the real world. That’s the dream. In reality, students have to bury themselves in a mountain of debt in order to get an education and find themselves living at home while they try to make ends meet. The harsh reality of college is that it’s not even close to being affordable.
The Numbers
In 2019, student loan debt reached an all-time high of $1.5 trillion. That means the average student borrower graduates with more than $37,000 in student loan debt. Why? The average tuition and fees for a public, 4-year in-state college are $10,230 and for out-of-state it’s $26,290. And those totals don’t include room and board.
Since the year 2000, tuition and fees at private national universities have risen 154% with out-of-state tuition rising more than 181%. Although there has been some wage growth in recent months, over the last thirty years, we have seen wages grow a mere 32%. This disparity in growth has driven college tuition out of reach.
The Result
Student loans are easy to obtain and repayment relatively convenient with payments deferred until after graduation and terms that can be 10-20 years, bringing college within reach for most people. Ideally, a college graduate will be able to earn more money so they’ll be able to pay off their student loans along with affording the necessities of living in the real world. Here’s where those slow-growing wages come into play again. College graduates aren’t seeing the kinds of wages that would allow them to pay off their loans and have resulted in many college graduates seeking jobs that are not in their field of study or living at home with a parent and putting off things like getting an apartment or even starting a family. All just to afford to pay for their education.
The Solution
The good news is that if you have a significant amount of student debt that you’re struggling to pay, loan modification may be the answer. Loan modification is a change in the terms of your loan(s) that can reduce your monthly payment or eliminate them altogether. At Miller, Hollander & Jeda, we offer 3 types of student loan modification.
Loan Forgiveness―For some professionals who qualify such as teachers, medical workers, government employees, and public service workers, loans may be forgiven and be considered repaid.
Loan Consolidation―This allows you to consolidate all of your loans into one monthly payment that is more affordable and may have a lower interest rate.
Loan Rehabilitation―This modification is income-based and allows the borrower to make on-time payments for 9 months and then the loan is closed.
Loan modification can help you avoid further damage to your credit and prevent your wages from being garnished for repayment. It can also save money in interest and penalties under certain circumstances.
If you’re struggling under a mountain of student loan debt, call Miller, Hollander & Jeda at (239)775-2000 today. We can look at your individual circumstances and determine which kind of loan modification could save you money. The modification can be done as part of a bankruptcy or on its own. We’ve streamlined the modification process to make it easy for our clients to get relief from their student loan debt. Student loan modification may not be the solution for everyone but if you qualify, it can be an answer that saves you a lot of money and allows you to move on to life after student loans!
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