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Originally posted at Christian Post March 18, 2016.
To learn Biblical answers to your financial questions, you can #AskChuck @AskCrown your questions by clicking here. Questions used may be lightly edited for length or clarity.
My younger sister is in a mess with her student loans. I am trying to help her figure it out. Does Crown have any materials, resources, third party consultants, or any ideas that you can recommend?
A Worried Brother
Dear Worried Brother,
You’re right to be worried. Student debt is a growing crisis in America. In fact, I believe that overpriced educations that don’t result in jobs are a new bubble ready to burst. Today, 7 in 10 bachelor’s degree recipients graduate with some debt, and student debt -- surpassing $1.2 TRILLION – is second only to mortgages. But just like the housing bubble, where people owed more on their houses than the houses were worth, too many young people owe for an education that does not turn into the job imagined.
Here’s what I recommend for your sister:
First: Get a handle on how much she owes on all debt and to whom. Crown has free resources such as the “Debt Snowball Calculator” where she can list all her creditors and the details of those debts to get a clear picture of the problem and a plan to attack it. You may be interested to know that the Class of 2015 graduated with the highest debt level in history – an average of $35,051 – so I hope you’ll find comfort in knowing that you’re not alone. At Crown we advise, “Run toward your creditors, not from them, It’s difficult to negotiate with a creditor who has been ignored. Most creditors respond to a specific request that is backed by a detailed written plan. The plan should include what you owe, a copy of your budget, and a detailed plan showing exactly how much you can repay each month.”