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In an article published in December of 2011 on the financial portal 'Business Insider', some real life stories were illustrated about people who took out loans for their education.
These student debt stories give a clear picture on how borrowers struggle to lift the crushing burden of student loans off their shoulders.
All of these instances depicted various situations that the student community faces that makes them financially stressed.
A summary of a few stories on the website are:
<b>Case 1:</b>
<br>A borrower took out a loan to study Game Art and Design and ended up owing $100,000 in debt.
<b>Case 2:</b>
<br>This person's original loan amount was $80,000 that increased to a whopping $135,000!
<b>Case 3:</b>
<br>A loan was taken from a leading bank in 2005, and the repayment terms could not be negotiated. Even after the borrower's repeated request to negotiate, the loan was sent to one of the banks collection agencies.
Many readers can easily identify themselves with the three instances mentioned above. These are some of the common scenarios that borrowers face due to job loss, bankruptcy, or heavy medical bills. Such instances create obstacles for people, making it difficult for them to pay back their debts and get rid of their financial liability.
<b>Other Factors Causing Student Debt</b>
<br>Apart from current financial conditions, there are other factors that may cause student debt. It could be due to multiple loans along with variable interest rates that come along, capitalization of interest or interest-only payment options. They eventually accumulate to a huge amount.
There are many borrowers who have not missed their payments on their credit card debt, car loans or mortgage. They even have a good credit score. However, because of the reasons mentioned above, they are never able to pay off their student loans.
One of the best solutions that these borrowers have in getting relief from their debt is to consolidate their various loans into a single loan amount. In this way, they only need to make just one monthly payment at a revised interest rate. <p><a href="http://kenhhit.blogspot.com">Kenh Hay</a></p><br /><br> |
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