Living with student loan debt is a reality for many, if not most, college graduates. Student loan debt is the second highest consumer debt class in the United States with over 44 million Americans holding federal student loans. Just under 10% (4.2 million) of these borrowers were in default at the end of last year. Going into default means that the borrower has not made a student loan payment in at least 270 days.
For the millions of borrowers that are nearing, or are now in default—it is important to fully understand the consequences. Few realize that the loans they took out to pursue higher education and a career could become very problematic if their payments are not current. Currently, there are 19 states, where a state-issued professional license will be revoked if the borrower falls into default. These professionals range from nurses, barbers, teachers and real estate brokers. This is a harsh reality, but the outcome is a very real possibility.
There are a number of different federal student loan repayment and loan forgiveness programs available that are designed to help borrowers avoid default and ramifications like the loss of a license to work or practice. The advisors at Higher Level Processing are available should you need to learn more about these options.