Previously, this blog discussed the difficulties of trying to discharge student debt, and the fact that many older Americans find themselves saddled with burdensome student loans. A new report is again highlighting the financial struggles student loan borrowers are facing.
According to figures from this year, Americans currently hold about $1.5 trillion in student loan debt. The average college graduate who had to take out student loans graduated with nearly $30,000 of debt. One study found that this student loan debt load is 300% higher than what their parents faced when they graduated from college. As a result, many younger Americans are putting off important milestones like getting married, buying a house and starting a family.
As many of these student loan borrowers struggle to make ends meet, they find themselves wondering what they can do to ease the financial strain. As mentioned in our previous blogs, student loan debt is extremely difficult to discharge through bankruptcy, but that doesn’t mean that bankruptcy isn’t a viable debt relief option for those with overwhelming student loan debt.
Instead, Chapter 7 bankruptcy can allow an individual to shed other debt, such as credit card debt, thereby freeing up funds to make it easier to repay student loan debt. This is a common approach, too, with about one-third of Chapter 7 bankruptcy petitioners indicating that they have student loan debt.
Sadly, there is no highly effective way to quickly rid ones self of student debt. However, other debt relief options, including personal bankruptcy, may help ease some of the other financial burdens an individual faces. Chapter 7 bankruptcy isn’t right for everyone, though, and certain requirements must be met before an individual can qualify for the process. Therefore, before taking the leap into bankruptcy, individuals should consult with an attorney who can help them better determine if that choice is right for them in their unique situation.