Golden State Law Group Alerts Public to NCES Student Loan Debt Study Revealing Problematic Trends

SAN DIEGO, CA--(Marketwired - Nov 18, 2013) - The San Diego bankruptcy attorneys at the Golden State Law Group have helped thousands of consumers and business clients work their way through extremely difficult financial situations. These financial problems have led to many different solutions that did not include filing for bankruptcy protection for some clients. There have also been many situations that have prompted the filing of bankruptcy cases under Chapters 7, 11 and 13 of the United States Bankruptcy Code. The attorneys at the firm have recently reviewed the conclusions drawn in a study that was done by the federal government regarding student loan debt and they want to alert the public to these findings.

Specifically, the study was performed by the National Center for Education Statistics, or the NCES. The study was entitled, "Degrees of Debt Student Borrowing and Loan Repayment of Bachelor's Degree Recipients 1 Year After Graduating: 1994, 2001, and 2009" and a link to the full text of the report can be found here. The study looked at student loan borrowers from the three different time periods mentioned in its title and adjusted the raw numbers involved to 2009 figures so that accurate comparisons could be made.

The study found that the average amount borrowed by students between 1992 and 2009 increased by nearly $10,000 per loan, from $15,000 in 1992 to an average of $24,700 in 2009. The study also revealed that 49 percent of students borrowed for their undergraduate studies in 1992 and that this percentage increased to 60 percent in 2009. In addition, 70 percent of students borrowed to attend what are known as for-profit colleges in 1992, but that number had increased to 90 percent by the year 2009.

In terms of repaying the loans, 60 percent of students were in the repayment phase one year after graduating in 2009. That number represents a drop from 65 percent of graduates in 1994 and 66 percent from 2001. Finally, 31 percent of the 2009 borrowers faced monthly student loan payments that were greater than 12 percent of their monthly income. That number represented a precipitous climb from 22 percent in 1994 and 18 percent in 2001. 

Therefore, the study shows that these days, more students are borrowing for their education, more money is being borrowed to finance education, fewer students are beginning to pay these loans back within one year of graduation and those who are face higher payments in proportion to their income than those in the past. 

"The NCES student loan study paints a troubling picture for far too many college graduates in the United States, and as of now bankruptcy is not an option for discharging student loan debt absent relatively rare circumstances," said David Weil of the Golden State Law Group. "That said, we encourage people whose finances are suffering because of student loan payments to have their overall financial situations reviewed as there could be other solutions to these problems," Weil added.

About the Golden State Law Group

The Golden State Law Group is a law firm in San Diego, California that's comprised of a team of San Diego bankruptcy attorneys who provide legal help to consumers and businesses. Specifically, the attorneys at the firm provide help to consumers in the legal areas relating to financial problems including consumer bankruptcy, student loan debt problems, credit card debt, medical bill issues, business bankruptcy, tax debt issues and personal injury cases. 

About the Golden State Law Group

The Golden State Law Group is a law firm in San Diego, California that's comprised of a team of San Diego bankruptcy attorneys who provide legal help to consumers and businesses. Specifically, the attorneys at the firm provide help to consumers in the legal areas of student loan debt problems, medical bill issues, consumer bankruptcy, business bankruptcy, tax debt issues and personal injury cases.