Student Loans: What You Need To Know
February 22, 2021
A college education has long been the highest standard in education. Many young people, even today, are the first in their families to attend college. Yet, the cost of college is astronomical in our current society. And we are talking more than just the cost of tuition.
Student loan debt is responsible for $1.53 trillion in debt in the United States. In fact, in the last decade, student loan debt has surpassed credit card debt and auto loan debt. According to College Board, the average cost of one year at a public university is 34.8% of the median household income in America. This high cost of education and the burden it places on families is the reason why more than 70% of bachelor’s degree recipients emerge from college today with substantial student loan debt, and why many college graduates find themselves in need of loan consolidation and refinancing before they even have a chance to frame their diplomas.
Student loan debt is no walk in the park, and it can haunt you for decades after you graduate. Many college graduates cannot afford payments towards their student loans because they are either unable to find a job or have to pay too much money towards other expenses. It may be hard to swallow, but filing for bankruptcy is a huge reality for many new college graduates.
Filing Chapter 13 Bankruptcy is not always the best answer to the student loan problem. Still, if your loans are in default and you cannot rehabilitate them, Chapter 13 bankruptcy may help relieve financial pressure. Most of the time, student loans cannot be discharged in bankruptcy. Filing Chapter 13 can help to relieve your financial burden by allowing you to pay only what you can afford. Smaller, more manageable payments can help you pay down your student loans in Chapter 13. This can provide you with the breathing room you need to get on your feet and improve your financial situation.
If you need help getting out from under the weight of financial pressure due to student loan debt, contact the law firm of George R. Belche, Attorney at Law. We are a debt relief agency.
George R. Belche, Attorney at Law
Lawrenceville, GA 30046