At the time of the economic downturn, we heard a lot about the explosion of the housing bubble. Now there is fear that an educational bubble has been created that is about to erupt as well.
Currently, more former individuals are behind on the student loan payments than they are on their credit card payments. In fact, student loan debt has been constantly increasing since at least 2003, and at least 11 person of this debt is more than 90 days in delinquency. There are other student loans not being paid that are still within the grace period.
Student loan debt as existed for quite some time, and short of institutions shutting students out of school altogether, we can expect student loans to continue into the future. Though for many it’s just one more debt, student loans present a number of challenges for borrowers in that such debt cannot be written off in a bankruptcy proceeding.
There are strategies that can be taken by debtors to reduce the debt they face. There will always be a certain amount of debt that can be relinquished through bankruptcy, and other debt can be dealt with through consolidation and negotiation.
For those overcome by debt, it’s always a good idea to speak to an experienced attorney in the debt management area. These attorneys can advise as to whether bankruptcy is a viable option. They can also work with regarding any long term financial planning to make certain that your financial needs are met, and that your credit rating is preserved to the point that you can again receive credit in the future.
Source: State Impact, “Yet Another Troubling Tidbit About Student Loan Debt,” by Kyle Stokes, Nov. 30, 2012
- For more information regarding debt relief and avoiding creditor harassment, please visit our Indiana and Kentucky law firm’s website.