People tend to read a good story that is why many stories can be found everywhere, especially about students who have debt and they are stressed on how to repay it. In 2013, United States Education Department conducted a research about the 2008 bachelor’s degree holder. And they found out that there are 34.4% of degree holders graduated without debt. Actually, around 55% of the degree holders graduated with a total debt of less than $39.999 and the remaining 0.5 percent of degree holders graduated with a total debt of more than $100,000.
Students who attend expensive law or institutions, medical or graduate school, their debt will turn into six digits. On the other, many student regret why they acquire student loans.
Student loans are not the same with a credit card loan, because you can get rid of it once you experience bankruptcy. If you postpone and lessen your payment plan, your debt will automatically grow bolder and bigger.
There are many student debt horror stories and in this article you can read three worst stories. Regardless of their efforts, these three students or borrowers experience financial nightmares when they decided to get a student loan. Here are the different stories.
Year 2009, when Alans Ens loaned out $75,000 as private loans and $25,000 as for federal loans. Ens borrowed large amount of money in order to pay his chosen degree in University of the Arts in Philadelphia.
After four years, Alans joined nonprofit organization and started to work in school music program. Alans Ens, put his load (federal) in check, on the other hand he fails to pay for his private loans and his debt became $110, 000. His situation became more crucial since some of his private debts have been signed by Alan’s mother. One moneylender is currently garnishing Alan’s mother’s salaries that is why Ens needs to pay her mother too.
Compared to private loans, federal loans offer borrower protections like grace periods, deferment and forbearance.
Before graduating, Jeremy Cooper enrolled in several schools with different degrees and fortunately he is now a degree holder and a Web Designer. Cooper also borrowed $45,000 in private and federal loans. According to Cooper, he cannot find a job that is related to his degree because his knowledge become obsolete and technology changes so fast. Since he graduated, he has collapsed behind his loan payments and unfortunately his private loan become $88,000. Even though he is working so hard, he can’s still afford to pay his debts.
However, student loan will be dismiss if government proves that the borrowers are doing their best in order to pay for their debt.
Joel Winston is a student who studied at the University of Michigan and borrowed $50,000 in order to pay his education. When he finally graduated, he pays his monthly payment on time. In 2006 he received a phone call from the credit company and unfortunately, the company informed Winston that he is not paying his debt.
On the other hand, if a mistake occurs the borrower should personally transact to the company in order to defend their self. By showing some legal proof indicating that you are paying your loans on time.