You wrote, "The $1 trillion now outstanding is economically significant." Does anybody realize that young adults or students owe more money that all American owe in credit card debt? That is unfortunately true. We owe more in student loan debt that credit card debt.
Then on top of all of that, young adults are forced to continue living at home with their parents. They can hardly afford to move out. Better yet they can hardly afford to move on with their lives.
The mounting student debt crisis could cause serious economic damage to the United States. Rising college costs and declining financial aid at both state and federal levels have significantly contributed to the problem. A good deal of responsibility, however, belongs to the financial institutions that service federal student loans, according to a new report.
Millions of students use loans underwritten by the Treasury Department and granted by the Department of Education to help make college a reality. Once the loan is approved, however, borrowers usually deal with third-party servicers — and that’s where the trouble often begins.
In 2010, the Education Department expanded its Direct Loan Program and contracted many for-profit financial institutions to service and administer the loans. Complaints to the department’s Office of Federal Student Aid jumped significantly.
The Consumer Financial Protection Bureau has documented a wide range of complaints, including payments not showing up in payment histories; processing errors that maximize late fees and penalties; misinformation on how payments are applied to multiple loans; misplaced paperwork that results in missed deadlines, and poor customer service that denies borrowers vital information about flexible repayment options.
Borrowers also complain that servicers often make debt management more complicated instead of helping them manage their debt. Servicers, however, are at fault for far more, according to the new report by Eric Fink, associate professor of law at Elon University, and Roland Zullo, an assistant research scientist at the University of Michigan.
Considering I'm in the UK, I am always shocked by how much people pay in the US. Even our top universities don't charge nearly as much as your middle tier ones do. I mean, yes we need rent money, and money to live off of, but tuition fees alone are like, half the price of US ones.
[quote author=ketchim link=topic=91535.msg578394#msg578394 date=1406754920]
Funny thing , my elder one got a BANK (RBC) scholarship worth 3K ... ::LOL::
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that make up for all the debt does it ::confused::
