Archive for August, 2010

College Loan Debt is a Big Problem for Borrowers, Lenders and Government

August 3, 2010

MSN Money and The Wall Street Journal have combined to produce an article detailing some of the problems that exist for those with college loans debt. Among the situations cited is a 41-year old MD with $550,000 outstanding college debt. The debt was much less (about $250,000) when this individual graduated from medical school in 2003, but has ballooned to the present amount through mismanagement.

Another case mentioned is a laid-off factory worker with $120 a week garnished from her $300 a week unemployment check to apply against her son’s college loan debt. The son is also unemployed, having lost his $29,000 a year job 8 months ago.

A third case describes a college loan debt that has grown from $28,000 to more than $90,000, with monthly payments that were originally $230 now $816.

How do such cases happen? (more…)

Advertisements