The stats 

According to the latest stats, there are over 43 million borrowers who collectively owe a whopping $1.6 trillion in student loan debt in the U.S. Let that number sink in for a second – $1.6 trillion? That’s about $37,000 for every single borrower on average. 

What’s crazier is how rapidly student debt has accumulated over the years. Experts point to a combination of skyrocketing college costs and stagnant household incomes as major culprits. In 2004, total outstanding student debt was “just” $345 billion. A decade and a half later, and that figure has ballooned by nearly 5 times. 

The impact this wall of debt has on borrowers’ lives cannot be overstated. Many are delaying life milestones like buying homes, starting families, or investing for retirement as huge chunks of their paychecks go to servicing interest-accruing student loans. Around a quarter of borrowers are estimated to be in delinquency or default. 

The solutions 

Here are some of the most common solutions for people to pay off their student loan debt: 

• Income-driven repayment plans: These allow borrowers to cap their monthly payments at a percentage of their discretionary income, which can provide affordability. Options include Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE). 

• Student loan forgiveness programs: Certain professions like public service, teaching, nursing and the military offer loan forgiveness after making qualifying payments for a set number of years. Popular programs include Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness. 

• Student loan refinancing: Borrowers can refinance with a private lender at a potentially lower interest rate to reduce their overall costs. This is easier with good credit. 

• Employer repayment assistance: Some companies offer student loan repayment assistance as an employment benefit to help recruit and retain talent. 

• Debt consolidation loans: Borrowers can consolidate multiple loans into one new loan, possibly with a lower interest rate. This simplifies payments but resets repayment timelines. 

• Deferment or forbearance: These are temporary postponements or reductions in payments granted in cases of economic hardship. Interest may still accrue. 

• Accelerated payments: For those who can afford it, paying extra towards the principal each month allows loans to be paid off faster and reduces interest costs. 

• Federal loan forgiveness: Certain federal loan programs promise forgiveness after 20-25 years of payment, regardless of the remaining balance. 

The bottom line 

When it comes to student loan debt, JG Wentworth does not offer student loan consolidation or refinancing. Our services are tailored more towards providing immediate cash solutions through the purchase of structured financial products. 

However, if you are considering using the proceeds from selling a structured settlement or annuity to pay off student loan debt, we might be able to help in that indirect manner. For direct student loan debt assistance, including consolidation, refinancing, or repayment plans, it would be more appropriate to consult with financial institutions or services that specialize in student loan management. 

Of course, the best solution depends on the borrower’s goals, income, career, and total debt amount. Exploring all options, managing payments responsibly, and understanding loan terms are crucial for paying off student debt efficiently.