The Student Loan Crisis Is Sending Graduates Into Bankruptcy – Guest Post
This week, it was reported that student loans in America have crossed the $1 trillion mark. Maybe it’s just me, but doesn’t everyone else see a bubble being created. These loans can’t be discharged in a bankruptcy filing and yet graduated students have no way of paying them back. Young adults are getting out of school and finding out they’re just no jobs. All they have is a couple hundred thousand dollars in school loans and no way to pay them back. This is what they signed up for or what they thought they were promised.
The only way a student loan can be discharged when filing bankruptcy is if the debtor could prove they no longer had the ability to pay it off. That is next to impossible, unless the debtor suffers from a debilitating illness or injuries from an accident that makes them unable to make a substantial amount of money giving them the ability to pay back student loans.
What’s tougher these young adults and even older adults that haven’t been able to pay their loans off is many times they file for bankruptcy to get relief from other debts and still are saddled with this massive albatross of a loan. The government is looking in to find ways of collecting on these loans that they guaranteed. They have recently used software programs that cross reference them and chase down people from the past. Most of these programs are bust, because people just don’t have it. Catching up with someone who is already in financial trouble and forcing them to start paying will probably send them straight into bankruptcy.
As the cost of education continues to raise this $1 trillion number will probably double in the next 10 years. These young adults need to wise up and realize if there’s no jobs out there don’t over encumber yourself with loans they can’t pay back. It’s sad to see, people in their 20s already filing for bankruptcy because they got an education.
Bob Jones started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.