Americans owe $956 billion in student loans. That amount is staggering. And unfortunately, student loan debt is not as manageable as other debt is. For most individuals, discharging student loan debt outright through bankruptcy is not an option. Therefore, it can be challenging to know what to do when you are swimming in student loan debt.
Thankfully, there is a way that bankruptcy can help you regain your financial footing when your student loan debt becomes overwhelming. If your total debt has become insurmountable, freeing up your income by alleviating other debt through bankruptcy may be an excellent option. This reallocation of resources may then make your student loan payments more manageable.
In late 2012, eleven percent of student loan balances were more than 90 days past due. If you are behind on this kind of debt, you are absolutely not alone. But because you cannot generally wipe student loan debt out through bankruptcy, you will need to find creative ways to make that debt manageable. Filing for bankruptcy on other kinds of debt may help enable you to make your student loan payments on time.
When loan consolidations and modifications prove to be insufficient for your situation, please consider consulting an experienced bankruptcy attorney about your student loan debt. Just as the recession hit Americans hard across the board, student loan debt is now overwhelming former graduates in significant numbers. If your debt has become unmanageable, take heart in the fact that you are not alone and that solutions are likely available to aid you in regaining your financial footing.
Source: CBS MoneyWatch, “Student loan debt nears $1 trillion: Is it the new subprime?” Jill Schlesinger, Nov. 28, 2012