The Student Debt Cycle

THE STUDENT DEBT ORSS SERES STUDENT DEBT HAS REACHED $1,000,000,000,000 39 MILLION AMERICANS HAVE LOANS 11.7% AVERAGE DELIQUENCY RATE Snadent loan debe has surpassed the amount of credit cand debr, auto kouns & home oquity lines of credit. It now ranks second cely below mortgage debt. Percent of loans thut are at least 90 days past the payment's dae date 16- 9% 10-11% DIRECT PLUS LOANS 12- 13% Requirements Lest by the gonerment 14- 15% 16-18% -Boer mat have an advene Pople ages 30 9 are the highest in not paing their alent loan n time with a deliquency rate of 19% eelie hitry FEDERAL LOANS Subsidized Requirements - Undergadune stadent REACHING DEFAULT Must show proof of financial nond Goverement prns the innevet during your time atchool 1 day late - loan i conidered deliquent LOANS student SLIPPERY SLOPE 90 days late - reported to the major credit burcaus Unsabnidised Requirements Cradane and undergraduate stadents -Do t seed d pd of faunial need - Responible for paying intert duning gror periadi and delermen 270 days lote - koan is considered in default PATH TOL DEBT CONSEQUENCES Waheld poyments from Iks or emplyer PRIVATE LOANS Truble getting home oers Anlle for any stadent fanded by a variety ofbenka or prite mpunie. inurance Dihy siging up for a cell phone plan CYCLE Limitations Priune louns h higher and unfand stalents have t pe daring shod Dly signing up for uities -Thee loan often mguim a cosigner and a backround chock to get Dumaged credit soo THE IMPACT $208,000 AVERAGE LIFETIME LOSS FROM LOANS the teancetoctetshontisaseonest yoors oftor eego, wghorest ara mo ovorego rosonos with studont on it strostokeip trencisy. thaviro ernwh stutn dst pentattes ha tekowne corincen 35% 40% 29% 15% 113 45912 908 03 hang gmene $10,000 sruoT LOAN DERT $26,000 o STUOINT LOAN DERT $50,000 OF STUDENT LOAN DEST INTEREST PAIO INTEREST PAID (AT 3.0) ् ।। MONTHLY PAYMENT PAYOI MONTHLY PAYOFF PERIOO INERESTS PERIOD (AT 3.40%) PAYMENT $200 4 yeors, 7 months $920 $200 14 yeors, 1 month $7,727 $513h S600 I yoot, 6 months $295 S600 3 yeers, 6 months $2.045 58.300