$5B student loan debt may be erased due to missing paper work
FBN’s Tracee Carrasco on tens of thousands of people will potentially see their private student loan debt to disappear because of missing paperwork.
A total of 101 graduates in the united states owed at least $1 million in federal student loans, compared to only 14 as a result that many just five years ago.
The latest Department of Education figures show that, thanks to skyrocketing training costs, accommodation costs, crippling interest rates and additional costs, more graduates will join the club of debtors who do not ever pay back their loans, the Wall Street Journal reported.
On average, a typical student borrows approximately $17,000 for the financing of their higher education, but the increase of the education and the cost of living led to 2.5 million graduates leaving school with a debt of at least $ 100,000.
More than two decades ago, nor students, nor students were leaving higher education with six-figure student loan debt, the data show.
“These are choices. We are not threatening,” Avishai Sadan, dean of USC Herman Ostrow School of Dentistry, one of the most expensive schools in the U.S., told the Magazine. “You know exactly what you’re getting into.”
“These are choices. We are not threatening. You know exactly what you’re getting into.”
– Avishai Sadan, dean of USC Herman Ostrow School of Dentistry.
Dental schools are known as one of the most expensive education programs in the country, charging an average of $71,820 a year, according to the Urban Institute.
USC, for example, reportedly requires perspective students to pay $91,000 a year, or $137,000, with living expenses included.
The government-backed loan programs offer students the ability to borrow amount for tuition fees, and the cost of living, with some ensure and control the operation of a graduate will ultimately pay back the debt.
Although expensive education grads on the path of a big salary, some continue to struggle to cover even their interest costs. The Journal reported that some graduates will pay more than $1,500 per month in interest, while their debt will increase by $130 per day.
Lukas Mikelionis is a reporter for FoxNews.com. Follow him on Twitter @LukasMikelionis.