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Is bankruptcy an option for school loans?

On Behalf of | Apr 18, 2018 | Bankruptcy

According to statistics, around 19 percent of people who file for bankruptcy are college students. It’s a normal way of life in America to take out student loans, but those loans cost what a student would pay for college many times over by the time they’re paid in full. It’s no surprise that around one out of five people who file for bankruptcy are living the college life where incomes are scarce and costs are high.

It’s a reality that more students need to be educated on the expense of college and borrowing. Some believe that having debt is a way of life, and to get an education, it sometimes is. However, you need to be able to get out of that debt once you accrue it, a difficulty for many.

Debt coming out of college has hurt many in today’s world. It’s known that people with college debts wait longer to purchase houses, and it can explain why some wait longer to start families or get married. People need to pay down significant debts, and that means that the rest of their lives are on hold.

Bankruptcy is an option for someone with too much debt, but with school loans, it is often not a possibility. However, if you’re struggling with debt beyond school loans or the loans or debts you took out for school are personal loans or credit debt, you may be able to have it discharged. Choosing bankruptcy is a serious consideration and only for the worst situations; your attorney can talk to you about whether or not it’s right for your situation.

Source: Dave Ramsey, “Is Bankruptcy The New College Trend?,” accessed April 12, 2018