subject: Student Loan Default Rate Rises To 4.8% [print this page] The percent of defaults on student loans rose to 4.8% within the third quarter of 2011. The spike in defaults is possibly tied in with a range of other economical elements affecting the lives of recent graduates. Some of these variables include the continued aftershocks of the economic downturn, the extreme pace of unemployment and underemployment, and the decline in incomes for several Americans. The predicament looks more likely to continue as the US economic climate faces additional woes due to the personal debt crisis in world markets like Europe.
Even so, although this rate is definitely higher compared to earlier in the year, its not even close to the student loan default rate of only two years ago. In 2009 the rate reached a historical high of 7.6 percent. That was back when the American economy was still suffering the total impact of the economic downturn. Whilst things have started to look up somewhat, students are not out of the woods yet. The American economic climate continues to be at the mercy of debt crises overseas and stagnant job growth.
The rise in student loan defaults has made a need for numerous individuals to start discovering new methods of preventing their loans from descending into default. One particular approach that is popular amongst several students is to combat the continuous influx of student loan payments by taking out a short term loan. Short term loans are common with numerous college students because they are significantly less difficult to obtain than standard loans. In addition, short term loans dont call for a credit history check. This makes them an enticing possibility for several individuals who're currently facing dire financial circumstances. Of course, any individual who is about to default on a student loan is not going to have immaculate credit score, and so they wont have the opportunity to pursue more standard methods of borrowing money.
A extensive range of short term loans are available to college students who need quick cash to prevent their loans from going into default. Payday loans are an extremely well-known variety. In some senses, payday loans are controversial among financial advocates since they tend to target low-income areas and charge incredibly large interest rates with a short repayment interval. Even so, some short term loans permit extended repayment intervals and lower interest rates, which make them much more popular. Vehicle title loans, for example, normally make it possible for the borrower as much as three years to pay the loan back. Whatever approach students pick to save their loans from default, one factor they should remember is always to choose wisely.
