Students (and their parents) face loan crunch after graduation
On behalf of Ellett Law Offices , P.C. posted in 1. Personal Bankruptcy on Friday, March 2, 2012
Many government and financial professionals have feared that a student debt bubble was growing over the years; one that, if popped, could financially devastate the country. After cracking the $1 trillion mark recently, student loan debt surpassed the likes of total U.S. home mortgage debt and outstanding U.S. credit card debt. Those fears, it seems, are quickly becoming a reality.
The National Association of Consumer Bankruptcy Attorney investigated the issue of student loan debt and found some staggering numbers. In 2010 college seniors graduated with an average of $25,250 in loan debt. By contrast, that average figure was around $24,000 in 2009. Parents are feeling the squeeze as well, owing about $34,000 in loan debt accrued by their children – a 75% increase since 2005.
The rise of student loan debt is clearly a worrying trend for government officials who are seeking to continue the country’s recent economic recovery.
While discharging student loan debt is no easy task, there is legislation being considered by Congress to make student loan debt more flexible. The bill, called the Private Student Loan Bankruptcy Fairness Act, would allow financially-strapped students and parents to consider student loan debt under the umbrella of bankruptcy protection.
Protecting the fiscal future of the country is obviously important, but the students and families that have mounting debt from their education loans are facing real financial issues today. They need guidance and support to move their way out of the red. Considering that current bankruptcy laws can be complex and that they may potentially be changing in the near future, the best support these students and families can seek is an attorney who specializes in bankruptcy law.
Source: News10, “College debt in U.S. surpasses credit card debt,” Jeff Maher, Feb. 23, 2012
Tags: bankruptcy protection, college loans, personal bankruptcy, student debt