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Common Concerns & Questions About Bankruptcy

Student debt relief crucial for the rest of the person’s life

| Jun 26, 2015 | Personal Bankruptcy |

Several Texas students who wish to pursue advanced studies in order to get better jobs often do not have sufficient funds to pay for their education. In addition to the various odd jobs that a person does in order to earn money to pay for their education, student loans are one of the most sought-after funding options for students.

While being educated, however, it is also important to look into the various practical aspects regarding the finances. In many cases, even after spending thousands of dollars on education, the debtor may not get a job right out of college or may get a very low-paying job, which does not help the person to repay the student loans. In turn, student loan debt is one of the highest-rated loans available in the United States.

Outstanding student debts in the United States have been estimated at over $1 trillion, according to authorities and financial experts. Debt relief in such cases becomes a major cause of concern for all students. Those students may wish to consult an attorney, who can help the student to connect with credit agencies and to come to a mutually amicable understanding with regard to the loan repayment.

Defaulting on student loans can attract severe penalties and even lawsuits. In most cases of loan default, the student’s or debtor’s future credit score may be adversely affected for as many as 10 years into the future. Obtaining a credit card later on or any other loan, for that matter, will become even more difficult if the person has a low credit score. Since a student who has just earned a college degree is just starting out in life, a bad credit score can compromise everything, including obtaining a mortgage, a car loan or even being able to rent a residence.

Source: New York Times, “Taking on student debt and refusing to pay,” Ron Lieber, June 12, 2015