In accordance with the World Health Organization, over one million people every year die from suicide. Suicidal tendencies are often associated with divorce, depression, ill-health, alcohol or drug problems; student loan debt being the most significant among them. A majority of the people who seek counseling advice are people who see suicide as a way out of private student loan debt problems. In order to stop people from committing suicide, you need to identify the symptoms that the individual is suicidal and have an open conversation with him or her regarding the particular issue. In the year 2008, a piece called "Suicide Spreads as One Solution to the Debt Crisis" was written by Barbara Ehrenreich. The editorial hinted at the housing crash, and Ehrenreich showed up numerous cases where people committed suicide when they were expecting a possible loss of assets. In the words of Ehrenreich, "Suicide is becoming an increasingly popular response to debt."
In 2012, President Obama is expected to tackle student loan debt issues and whether the government should take steps to alleviate the incredible burden on both your wallets and lives. Private and federal student loan debt exceeded credit card debt level for the very first time in 2010, and is likely to reach $1 trillion this year.
Simultaneously, as graduates accrue huge student loan debt, many fail to find work owing to the unstable job markets and as a result default on their loan payments. In accordance with the DOE or Department of Education, among fresh graduates who started reimbursements in 2009, 8.8 percent had already failed to make their federal loan payments. The figure is in sharp contrast to 7 percent in the year 2008. Sadly, the number of student loan debt related suicides is constantly on the rise. Founder and Executive Director of All Education Matters, Cryn Johanssen stated that suicide is a dark facet to the student lending crisis. He finally declared that this is a national crisis which calls for immediate attention.
At present, student loan debt surpasses the overall credit card debt amount. In the year 2005, the bankruptcy law was amended to prevent private student loans from getting discharged under a consumer bankruptcy. In spite of this, private student loan lenders were giving out loans like free cake. Consequently, its students who are now trapped in the vicious cycle of student loan debt. Even the co-signers are pulled in this cycle.
Suicide as a way out: What's the underlying cause?
According to the Consumer Financial Protection Bureau, private student loan lenders cause people to fail with debt issues that can't be discharged under bankruptcy. They forced students into lives of fatal debt slavery devoid of any apparent concern for the borrowers. According to a recent research conducted by CFPB and Department of Education:
• A majority of the private loans have only a handful of options for forbearance or payment revision. Most private loans include variable rates, resulting in future payment difficulties. Before 2010, national law did not require a disclosure revealing the actual rate of interest on a borrower's loan until the lender acknowledged the loan, permitted the credit, and prepared the check for mailing.
• A number of lenders avoided school financial aid agencies and promoted loans directly to students. Consequently, in many instances, the school failed to assess the borrower's monetary requirement, weigh against the loan amount, or confirm that the borrower was actually registered. A lot of lenders even lowered the minimum credit score needed to obtain a private student loan in order that they could create and then trade off more loans. A majority of the students failed to realize the differences between private and federal loans. Quite obviously, they ended up taking chancy private loans ahead of exhausting their secured federal alternatives.
Article Source: http://EzineArticles.com/?expert=Piu_Majumdar
Article Source: http://EzineArticles.com/7650248
In 2012, President Obama is expected to tackle student loan debt issues and whether the government should take steps to alleviate the incredible burden on both your wallets and lives. Private and federal student loan debt exceeded credit card debt level for the very first time in 2010, and is likely to reach $1 trillion this year.
Simultaneously, as graduates accrue huge student loan debt, many fail to find work owing to the unstable job markets and as a result default on their loan payments. In accordance with the DOE or Department of Education, among fresh graduates who started reimbursements in 2009, 8.8 percent had already failed to make their federal loan payments. The figure is in sharp contrast to 7 percent in the year 2008. Sadly, the number of student loan debt related suicides is constantly on the rise. Founder and Executive Director of All Education Matters, Cryn Johanssen stated that suicide is a dark facet to the student lending crisis. He finally declared that this is a national crisis which calls for immediate attention.
At present, student loan debt surpasses the overall credit card debt amount. In the year 2005, the bankruptcy law was amended to prevent private student loans from getting discharged under a consumer bankruptcy. In spite of this, private student loan lenders were giving out loans like free cake. Consequently, its students who are now trapped in the vicious cycle of student loan debt. Even the co-signers are pulled in this cycle.
Suicide as a way out: What's the underlying cause?
According to the Consumer Financial Protection Bureau, private student loan lenders cause people to fail with debt issues that can't be discharged under bankruptcy. They forced students into lives of fatal debt slavery devoid of any apparent concern for the borrowers. According to a recent research conducted by CFPB and Department of Education:
• A majority of the private loans have only a handful of options for forbearance or payment revision. Most private loans include variable rates, resulting in future payment difficulties. Before 2010, national law did not require a disclosure revealing the actual rate of interest on a borrower's loan until the lender acknowledged the loan, permitted the credit, and prepared the check for mailing.
• A number of lenders avoided school financial aid agencies and promoted loans directly to students. Consequently, in many instances, the school failed to assess the borrower's monetary requirement, weigh against the loan amount, or confirm that the borrower was actually registered. A lot of lenders even lowered the minimum credit score needed to obtain a private student loan in order that they could create and then trade off more loans. A majority of the students failed to realize the differences between private and federal loans. Quite obviously, they ended up taking chancy private loans ahead of exhausting their secured federal alternatives.
Article Source: http://EzineArticles.com/?expert=Piu_Majumdar
Article Source: http://EzineArticles.com/7650248
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