At a recent visit to Virginia Commonwealth University, U.S. Senator Mark Warner (D-Virginia) passionately pushed for a student loan debt relief plan as a result of the staggering amount of graduates struggling to pay back their student loans. Sen. Warner is proposing bipartisan legislation in order to provide graduates with income-based repayment plans.
“If you look on a 20-year basis, federal and state direct-aid for education has gone down,” Sen. Warner states. “Cost of education has gone up. Higher education cost have actually surpassed health care costs in most cases. We’ve tried to cover that gap by making it easier to loan,” according Sen. Warner.
It’s estimated that nearly 15 percent of student loan borrowers will default within the first three years of beginning repayment, according to the Dynamic Student Loan Repayment Act Warner is fighting to pass in the U.S. Senate’s upcoming session.
Included in the legislation is income-based repayment solutions and flexible refinancing options, which would make it easier for borrowers to better manage their student loan debt while continuing to job search or further their education.
To better illustrate Warner’s endeavor, Corinne Vigen, a 2013 graduate of VCU and former VCU Young Democrat, introduced Warner to the college audience and also described her trying experiences with student loan debt. She is currently deciding whether or not she can afford another degree while paying down her existing student loan debt.
“Will I ever be able to save enough money to buy a house, or will I be stuck renting forever,” Vigen states. “Am I going to be able to recover this financial standing that I have right now, with this looming possibility of a graduate or doctorate degree?” Vigen goes on to say
The average undergraduate degree leaves graduates with approximately $29,000 of student loan debt. This does not include credit card debt. For students seeking graduate degrees and beyond, this amount can easily double or triple. Also, many college graduates are finding it difficult to find jobs or careers in their field of study with salaries high enough to afford their loan payments as well as their living expenses.
This highlights the national epidemic of debt. The majority of Americans carry some form of debt, whether it is student loan debt, credit card debt, or debt related to medical bills. As a result, many American consumers are seeking help from debt relief agencies. A debt relief agency carefully evaluates debt, and provides flexible and affordable repayment options that allow consumers to achieve their financial goals.