The student loan crisis is something that is affecting more college graduates each year across the United States. Students are leaving colleges and universities with enormous student loan debts with high-interest rates. On top of all this, many students face problems with student loan collection agencies using tactics to take advantage of students’ rights. Do not hesitate to seek help from a Tennessee Bankruptcy Attorney if your student loans have brought you to bankruptcy.
The Student Loan Crisis in Tennessee
The Tennessee student loan crisis and the student loan crisis throughout the United States is the widespread struggle of college graduates with paying off their student loans. To give you an idea about how much student debt there is, the total United States student loan debt was at $1.71 trillion by the end of 2020. Millions of these students owe an average of $37,691 each for all student loans and about $36,510 each in federal student loans.
Tennessee private student loans are even higher, with an average of $57,083 per student. When it comes to paying off these student loans, many students are struggling. Around 9% of students were behind on their payments in May 2020, before the coronavirus started taking jobs. After the coronavirus worsened, nearly 11.2% of students started falling behind on payments.
This universal struggle to pay back student loans is even harder for students who dropped out of college and did not complete their degrees. What this does is leave them with far fewer higher-paying job options to pay back what they owe. Even students with college degrees are sometimes unable to find a job, especially with the coronavirus situation.
Most Common Problems Faced with Tennessee Student Loans
Some of the most common Tennessee student loan challenges are dealing with abusive and sometimes aggressive student loan collection agency tactics. These collection agencies can distort the student’s rights when it comes to repayment options, leaving many students distressed and confused.
Many college students are not aware of who is collecting what when it comes to student loan repayment. Due to the complex nature of multiple student lenders, some students do not realize it when an independent collector pretends to be representing the government. This can lead students to be taken advantage of.
This is why it is vital to know about your rights as a student loan borrower. Find out as much as you can about your repayment options, deferment, student loan forgiveness programs, and alternate ways to pay back your student loans when you are falling behind. Feel free to talk with a lawyer if you have any questions about this.
Bankruptcy Attorney in Chattanooga, TN
Consider seeking help from our lawyers in Chattanooga, Tennessee and North Georgia if you are struggling to pay back your student loans and are coming closer to bankruptcy. All you have to do is call Tom Bible Law at (423) 424-3116 to talk to a Bankruptcy Attorney in Tennessee for a free consultation today. Our team of experienced Tennessee bankruptcy lawyers is located in Chattanooga, Kingsport, and Tullahoma.