3 terrifying student loan horror stories
3 scary student loan tales
Once you're in student loan debt, it's hard to avoid drowning in it. According to the Project on Student Debt, the average undergrad borrowed nearly $27,000 to make it through four years of college in 2011. For those who attend pricey institutions or law, graduate or medical school, the debt can spiral into six digits and quickly become unmanageable for those students who weren't prepared for it. Research from the American Institute of CPAs shows that less than 40 percent of all borrowers had a firm understanding of how hard student loans would be to pay back. Sixty percent of borrowers said they have some regret over their student loan decisions.
Unlike credit card debt, once you've taken on student loans, there's usually no getting rid of them through bankruptcy. While loan holders will oftentimes negotiate temporary reduced repayment plans and payment postponement options, your loan will most likely grow bigger and badder while you struggle to get back on your feet.
Despite their best efforts, these three borrowers had their loans turn into financial nightmares. Here are the worst student loan horror stories we've heard and how to avoid them.