Student debt is one of the hottest topics for the last two or three decades. Education is getting so expensive that experts are speculating that a student debt bubble is forming silently. One such “beneficiary” of this student debt is a couple from Arkansas. Let’s see how wild their story of student debt is.
Student Debt and Arkansas Couple
The couple – Ron and Marcia got married in 1992, they planned to consolidate their student loans, as it appeared as a smart financial move to them. However, increased interest rates have now more than doubled the amount they owe to banks. The couple now owes $130,000 in student debt to the finances.
The couple says that despite paying $140,000 to banks they are still not free from the debt. The original principal amount of the loan was $54,000, which means they have paid the money three times over in 25 years. “The loans have always stayed one step ahead of us,” said Marcia to us.
Ron now works as an engineer, he left the US Air Force in the early 1990s. He went to college to pursue a degree in aviation. Marcia took out a student loan to get a master’s in education while her husband was working part-time as a certified flight instructor.
Ron and Marcia experienced major financial setbacks after their daughters were born. Ron was laid-off from his work and Marcia suffered an injury that made her unable to work. They decided to defer their loan payments.
However, that move didn’t help them in any way as the interest rates were increasing and it kept accumulating in the duration. That’s why they couldn’t even pay their principal amount.
Their debt prevented them from saving up money for their daughters’ education. This financial plight made them opt-out for the Parent PLUS loan, which is one of the expensive types of loan, it covers the cost of attendance for college and income is not the criteria for it.
This loan made another addition of $100,000 to their already pending debt. Meanwhile, their daughter also took individual loans while they were studying.