|By PR Newswire||
|February 9, 2014 08:14 AM EST||
NACOGDOCHES, Texas, Feb. 9, 2014 /PRNewswire-iReach/ -- While delinquencies for credit card, car and mortgage debt have all been in decline since reaching a peak during the financial crisis, student loan delinquencies remain on the rise. As this younger generation struggles under the burden of their outstanding student loan debt, the economy will be impacted by this group's inability to buy homes, cars and other purchases that can help the economy continue its recovery.
It is a concern that the central bank shares, as the New York Federal Reserve has moved to measure the size of the current student loan load. While the Federal Reserve is trying to determine the size of the loan load, other questions should be raised, including the reason for the continued increase in outstanding student loan debt.
"It seems that a big part of the issue has to do with timing," said a representative with United Cash Loans 123. "Many of these individuals that are struggling with their student debt graduated during a time when the economy was struggling through a recession, and job growth still has not risen all that much in the time since. Many graduates were not able to find the lucrative careers they studied for, and had to accept lesser-paying jobs to make ends meet."
Concerns abound relating to the manner in which these loans are distributed, with many comparing the distribution of student loans to the distribution of home loans in advance of the housing market collapse. Another concern that has not been mentioned frequently is the manner in which these loans are utilized after distribution.
"We do not like to speculate on individual behavior, but the fact remains that many of the student loan recipients are younger and have not had much experience in handling financial responsibilities," said the representative of United Cash Loans 123. "These loans can cover everything from tuition to living expenses, so the total loan amounts over four or five years can really add up quickly."
The high total loan amount, coupled with the difficulty in finding lucrative jobs after graduation may be the reason for the increasing delinquency levels of student loan debt.
"This is a difficult problem," said the United Cash Loans 123 representative. "Finding a solution to a complex problem such as this is no easy task."
Media Contact: Brandon Hopkins, AfterHim Media LLC, 559-871-1613, [email protected]
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SOURCE United Cash Loans