Many are sinking in debt. What will help?

The Orange County Register reports.

For college graduates, average student owes $35,000 in debt: Here’s information on possible relief

The Obama administration last week unveiled a new loan-forgiveness plan for former students of Corinthian Colleges, the Santa Ana-based for-profit chain of career schools that went belly up amid allegations of fraud.

The rare step could be good news for many Corinthian students. Yet it does little to address the central problem facing borrowers from the rest of the nation’s colleges.

As tuition has soared, students have taken on enormous levels of debt – now approaching a record balance of $1.2 trillion. That’s not all bad; relatively easy-to-get federal loans have helped far more people attend college and improve their career prospects. But many are sinking under the weight.

Student loans are second only to mortgages as a source of consumer debt. And it’s having a real impact on borrowers’ lives: Researchers cite student loans as a main reason young adults are delaying buying a home.

Here’s a brief look at the problem and the prospects for relief.


 
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