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Student Loan Debt

Student loan debt is so common today and is arguably the worst kind of debt to have.

Student Loan Debt

Debt is never a happy subject. And if you have student loan debt, you are all too aware of the feeling of helplessness of being in debt. Unlike almost every other kind of debt, student loan debt can almost never be removed from your life except to pay it back. It’s with you until the day you die, or pay it off, whichever comes first.

Most of the nation’s outstanding student loan debt is owed by younger households. In 2010, 70% of the total student debt was owed by households headed by those under age 45. Nearly a fifth (18%) of the outstanding debt was owed by households age 45-54.

Student loan debt is owned by a vast majority of well-educated individuals by an overwhelming amount. Although not all of this debt is by individuals who have a college degree, it is an alarming 70% of college graduates. And among these, the scales are heavily tipped towards middle-income and upper-income homes.The remaining 30% is owed by individuals making less than $36,000 a year. That being said, it is the country’s least wealthy individuals who actually owe the most. These are individuals making less than $10,000 annually. This is primarily due to the younger age of the individuals.

Knowing this information and having student loan debt, begs the question: Should we even allow our children to acquire the same fate? With Obama’s loan forgiveness and repayment programs, we are offered some hope. It’s possible to have some or all of your student loan debt forgiven. But frankly, it is not very likely. Loan rehabilitation and income-based repayment programs do help to decrease monthly payment amounts. Unfortunately, with accruing interest and 20-year repayment plans, it’s difficult to feel you are making any progress repaying it. The worst thing to do is let them default. It adds additional collections costs, ruins your credit and gives you zero relief from the debt. It always makes your situation far worse.

If you are in student loan debt, it may help to eliminate other debt to help you focus on your student loan repayment. If you can pay off all other debt, it makes your student loan debt less overwhelming. However, if you can not, consider filing bankruptcy. Schedule a consultation with an attorney, to go over your bankruptcy options. He may not help with your student loans, but may help to get you in a better financial situation where you are able to start paying them back. For more information on student loan debt, visit the Department of Education website.

We are a debt relief agency and have practiced bankruptcy law for a combined 50 years. Our services include helping individuals and couples file for bankruptcy relief under the Bankruptcy Code. 

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