Out of all of the people who have participated in higher education over recent years, a significant percentage has left their educational institution with large amounts of student loan debt. In an ironic turn of events, some who have pursued education to ensure a way to provide for themselves and their loved ones have been unable to do so because of the cost of their education.
The connection between getting more schooling after high school and getting a job used to be clearer. Investing in college or a vocational program was seen as a path toward gainful employment and a firm foundation for the future.
Young adults in Ohio who are just graduating from college will not be surprised to hear about the increasingly high amount of debt being carried by their peers. In fact, a recent report notes that the average college graduate in our nation has $35,200 in debt when they leave school. This can lead to some having difficulty with repayment and a low or bad credit score. The report notes that a full 7 percent of recent graduates say that they will never be able to repay the debts that they owe from college. Others believe that it will take 9 years to even hope to repay the loans and credit cards that they have taken out. In each of these cases, if the young person is unable to keep up with payments, they may find that they have a bad credit score.
There can be little question that financial considerations are an important aspect of our daily lives. When people suffer financial distress, choices must be made on how to adjust the household budget. Debt can have strong influences on many aspects of our lives. Generally, people in Ohio who are burdened by large balances of unsecured debt, such as credit card debt, medical bills and the like may also have various secured debts that combine to make it difficult to put food on the table and heat the home.
Any member of a household that carries high balances of debt can understand the strain that debt can place on consumers. Cincinnati area residents should probably not be too surprised that large debt loads can place a strain on members of our Armed Forces. Officials at the Pentagon say that financial troubles are the leading source of anxiety among American troops. The officials say that anxiety over debt can top the anxieties that service members experience--and in some cases, creating more anxiety than war itself, according to Reuters.
The economic recession has created financial stress on countless people in Ohio and the rest of the nation. Some of the people hit hardest by the recession were recent graduates, who, after accumulating loads of student loans, found that they could not secure jobs that seemed so promising when they entered school.
Former Ohio Attorney General Richard Cordray now heads the Consumer Finance Protection Bureau. The CFPB and the Education Department recently looked into student loan debt in the United States. Cordray recently said in a written statement that the study findings "reveal that students were yet another group of consumers that were hurt by the boom and bust."
In the previous two posts, this blog has been discussing the growing student loan debt problem that is gripping the United States. Student loans sit in a special category under the nation's bankruptcy laws. In the last post, the discussion focused on student loans in bankruptcy and the near impossibility of finding relief from the special category of debt. Other emerging ideas, however, have been bandied about in recent months.
In the last post, this blog began an in-depth discussion on the mushrooming student loan debt problem. There is general agreement that the skyrocketing college debt load is a true problem in the United States, but little consensus exists on how to relieve the student loan debt problem.
The amount of student loan debt carried by Americans has received a great deal of attention in recent months. The troubled economy has, in part, brought attention to the issue. The rising cost of college and the nation's bankruptcy laws have also factored in to the increased attention on student loan debt.