Digital News Report – The Federal Reserve Board released a new report that showed student loans debt was more than credit card debt in the United States. Mark Kantrowitz from finaid.org, told the Wall Street Journal that student loan debts totaled approximately $829 billion while revolving credit accounts which include credit cards totaled approximately $826.5 billion.
The student loan debt tally included both federal and private loans. Student loans are used to pay for the cost of funding college tuition and fees. One problem is that universities and colleges are increasing the cost for students to attend. When students are unable to pay back the student loan after college is over it is extremely difficult to file bankruptcy for this type of financing. There are ways to lower the monthly payments if you are facing a financial hardship, but you will very likely still have to pay back the loans.
Some college graduates may find that they have multiple outstanding loans with some federal and some private. In addition to this, they may also have credit card debt as well. Some people consider the option of student loan consolidation or a debt consolidation loan to refinance to one lower monthly payment. Make sure to consider all options before making this decision as there are some benefits to federal student loans.
By: Victoria Brown