It’s rare to hear stories about college students taking out private student loans from a lender like Sallie Mae and then beating them in court after being hounded and sued for money after defaulting on the loans. I was able to lock-in low interest rates on the private student loans I took out, but Stefanie Gray wasn’t able to get a cosigner on her loans (both her parents passed away when she was younger) and was given “credit card-like interest rates.” That was the beginning of Gray’s troubles, but this story has a happy ending.
Student loan debt is exploding. It has grown so much and so fast that it not only crushes millions of young people, but it also has started to weigh down our entire economy. Total nationwide student debt now stands at $1.2 trillion, more than the total credit card debt owed by everyone in America.
If you were to guess what the most popular piece on The Billfold is, what would you say? The story that readers from all over are looking up and reading on a daily basis isn’t about how compounds interest works or the difference between traditional and Roth IRAs—it’s this piece by Anna Moreno, about when she defaulted on her student loans and what she did to get back on track.
Any Billfolders graduating college come May? Grad school? Commencement-themed porno to participate in? DO THIS. I will be your best friend. Or post a photo of it. SFW only.
Generation Progress (formerly Campus Progress) is putting together state-by-state factsheets about the student debt crisis. They’ve done six states so far, including California, where I went as an undergrad. State and local funding dropped by 25.4 percent in the U.C. system in the last decade, and in-state tuition has now skyrocketed by 114 percent, according to data from the College Board.