By: PRBuzz
California Student's Defaulting on School Loans More Than Ever reports Payday Ninja

San Francisco, CA ( November 19, 2012 -- It has always been a gamble when deciding on heading to college, as students must often decide on the quality and quantity of loans that inevitably face them when applying. The students often must hope that their degree will result in higher earnings, which will let them settle in after graduation.

For many the gamble will pay off one way or another, as college unemployment rates are half the rate of those with no college experience. Yet, a growing number of college graduates are falling short of the mark and defaulting on their loans. The trend is not only at private or for-profit schools either.

The public college in Sacramento's region has students borrowing twice as much as their counterparts of six years ago. The same students are also defaulting twice as much as there yesteryear peers, according to new federal data.

Colleges like UC Davis, Sacramento State and even community colleges are continuing to raise fees for their supposed offsetting of costs to run. More recent graduates default from a mixture of those payments, and a recently shrinking job market.

While the market has improved since the four years ago, it is still stagnant compared to decades past. Many who students who can find jobs, tend to have jobs that do degree-oriented.

"It's like the housing market - all the debt," said Sacramento State senior Daniel Eastman, who was referring pre-2008 housing bubble that catapulted the U.S. economy into recession after the 'bubble burst'. Eastman has borrowed $7,000 a year since transferring from a community college. "People aren't going to be able to pay it all off."

Eastman is hoping to avoid the fate of nearly 1,000 local graduates who defaulted in the last two years of starting loan payments in 2010. In the previous four years, only 400 local students defaulted, according to U.S. Department of Education Figures.

Over $315 million in U.S. Government loans were borrowed by students and their parents in the last school year. That number is up from $170 during 2006.

"I think it's psychotic," said Sierra College financial aid program manager Linda Williams said, adding that the federal government, not the college, decides the fate of issued loans. "I can't deny them, unless it is something glaring."

California nonprofit private school student pulled in $3 billion in debt last year, and students in for-profit schools borrowed $2 billion.

What is worse for these hard-up students, is that it is nearly impossible to avoid the consequences from defaulting on loans.

"You've got to be dead to get out of these loans," said Ed Emerson, chief of federal policy and programs at the California Student Aid Commission. "The feds don't give up. They can garnish your wages. They can seize your property."

About Payday Ninja:

Payday Ninja ( provides a quick and convenient way for people to access the money they need from the comfort of their own home. Borrowers are provided with small, short term loans that can be used for any purpose. No credit check loans can be provided and completed in less than 24 hours.

Trevon Victor Bowen
Phone: 4156324879

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