Student loans can take many years to pay off. There are different repayment options. The standard repayment is a 120 month payment, or ten years. The graduated repayment is can take up to 10 years but 30 years for consolidation loans. Extended repayment, this is with $30,000 dollars in loans can take up to 25 years.
In reality, student loans never really go away, interest rates can be ridiculously high, they can hold you back, and student loan forgiveness programs are hard to get into and stick with. Student loans never really go away: If you file for bankruptcy because you can't afford to pay them back, they wont disappear, Student loans can never be discharged in bankruptcy. Interest rates are high: federal loans are often between 5% and 6%. Some rates can be as high as 9%. Private loans can vary between 2.5% and 12%. They'll hold you back: Many students delay moving out of a family members house because of their student debt. Many students have also delayed saving for retirement and more investments because of them. Many students delay many things, other students make early steps toward retirement, getting married, or even having children because this way they are at stake because student loan burdens. Student loan programs: Many programs are hard to get into and stick with.
In 2018 there is about 1.48 trillion dollars total in US student loans, 44.2 million Americans have student loan debt. Student loan delinquency rate is 11.2%. the monthly average payment is $351 dollars for a borrower aged 20 to 30 years. The median monthly student loan payment is $203. Since 2008 the students graduation with debt increased by .2 million. It started out at 1.1 and grew to 1.3. 66% of graduates from public colleges have loans, 75% from private nonprofit colleges, 88% from for-profit colleges have loans.
Student loans have doubled since 2007. The Bartleby website states that the total of student loan debt in 1.2 trillion dollars and 1 trillion being from federal student loans. Mary Claire Fischer stated "two-thirds of students who receive bachelor's degrees leave college with an average student debt of twenty-six thousand dollars." Student loans are a big part of national debt. There are different options that students can choose. There is the 6 month grace period after graduation, a program for students who want to go into public teaching called the "teacher forgiveness program", and another one is for the military. These programs are hard to get into and to stick with. To get loan forgiveness you have to fully complete the program
"The Brookings Institution put out a report report that defaults rates for students who first took out federal loans." This report has stated that by the year 2024 students who first took out federal loans in 2004 will reach 40 percent. Thats 4 out of 10 students. The default rates have been rising and look to have no indication of letting up at all. The 40 percent is rough estimate based on the historical trends. The Washington Post states that these rates could lower if the economy stays on track, but it can also go into recession in the next few years and raise higher. As of right now, no one really knows what directions we are headed in, but they believe that we're not headed into is not great and loan defaults are "bound" to get worse. Judith Scott-Clayton stated in a phone interview with Columbia University "What's really shocking and tragic is that average levels of debt would not predict this severity of default rate."