DAYTON — Nearly half a million people in Ohio are in default on their student loans, according to the Office of Federal Student Aid.
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With the cost of college now higher than it’s ever been, student loan balances continue to add up. Combine that with the end of all federal loan forgiveness plans, and many Americans are now struggling to pay up.
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“We’ve got $1.8 trillion in student loan debt that is being carried by about 43 million Americans,” Jack Wallace, Director of Government and Lender Relations at Yrefy, said. “And specific to Ohio, you’ve got 1.8 million residents in Ohio that owe $63 billion, which is an average of about $36,000 per borrower in Ohio. So, it is a major issue.”
As News Center 7’s Nick Foley reported, much of that debt is currently in default, meaning more than 270 days have gone by without a regular payment. In fact, just under 430,000 Ohio student loan holders fall into that category.
Wallace said that equals big problems for personal credit. He encouraged loan holders to avoid default status at all costs and go to websites like the U.S. Department of Education and studentaid.gov to get back on track.
“Let’s look at the opportunities to get out of default, which could be by consolidating, depending upon the kinds of loans that you have, or entering into the rehabilitation program that the department offers, where you would get into making nine on-time payments, which is about 15 percent of your adjusted gross income, to get yourself out of default,” he explained.
Wallace also said for those new to the high price of college to remember to apply for all grants and loans available and consider starting in community or public colleges to alleviate costs.
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