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Student Loan Debt Defaults

Lakisha Johnson and daughter (Reuters)

With nearly 5 million Americans defaulting on student loans in 2017 alone, it’s a small wonder that this oppressive financial instrument is still used. While the initial thought process behind it was aimed at giving more people access to tertiary education, it only managed to exploit the vulnerable. But are all loans evil? Discover how to make it through the minefield that is left in the wake of the student loan crisis.

Educated And Living In A Shelter

Lakisha Johnson from Philadelphia had high hopes for her college education which managed to land her a $13-an-hour position caring for the elderly. The salary was barely enough to make ends meet and as it was, she was forced to move into a shelter when her rental became too high. For her and her daughter, the move was gut-wrenching but they pushed through as a tax refund was due and was bound to make a substantial difference. What Lakisha didn’t realize, was that Uncle Sam was waiting for this payment too. Lakisha defaulted on her federal-backed student loans and those tax credits were used to pay off a portion of the balance owing.

Until College Is Free

For many, getting out of their student loan debt is a distant dream. Those repayments not only take years to finally disappear from a budget but depending on the number of years studied, can also amount to many installments.

For many, getting out of their student loan debt is a distant dream. Those repayments not only take years to finally disappear from a budget but depending on the number of years studied, can also amount to many installments. Those who are unable to settle the debt immediately may consider streamlining their payments into one installment. People like Emily Fye believes that the government has failed its people by not providing free college education. A good stroke of luck for her meant being able to pay off her student debt within six years. For those who are not that like, anywhere between ten and twenty years is the norm.

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Congress Stunting Growth In Law, Public Service Suffers

Public service will no longer seem a viable option for law students. Although clamping down on federal-backed loans can be a move in the right direction, it seems to be a tiny plaster on a gaping wound. Part of the proposal which will see Congress fill up the hole that the tax cuts left is that law graduates in public service no longer qualify for loan forgiveness.

For many, the only way to rise up out of a bad situation is with proper education, and the noose of student loan debt always lingers in the background. As the noose tightens, those who have defaulted not only face a future or stress over debt but also the insecurity of whether this financial turmoil was worth it, considering the underemployment of graduates.

Cindy Trillo

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