Student Debt An Increasing Problem

Filed Under Debt and Debt Relief, Student Loans and Financial Aid

The price of higher education has gone up drastically in recent years. At one point in time it wasn’t unrealistic to expect a student to be able to work through school and (maybe with a little help from their parents) be able to graduate in four or five years with little to no debt to their name. This is no longer the case. With many public schools now rivaling the costs of some private schools, it is difficult for many students to graduate without debt unless they (or their parents) are independently wealthy.

Student debt is one of the greatest sources of debt in the country, with students currently holding over 800 billion dollars in outstanding student loans. Since the job market has only gotten tougher for recent graduates, it has become increasingly difficult for students to try and repay these massive loans. Many of the students who had once gone to college with such promise are stuck working low paying jobs and attempting to pay off the expensive degrees that have done them very little good in the beginning of their professional careers.

Student debt consolidation is a partial answer. This replaces multiple loans with one, blended loan that hopefully has terms the student can handle. But this only packages the debt to make it somewhat more manageable; it doesn’t offer any real student debt relief.

Another option is bankruptcy but the majority of students cannot file for bankruptcy when their loans get to be too much. For instance, Hawaii bankruptcy laws state that most student loans are protected in bankruptcy courts, meaning that no matter how many times you file for bankruptcy or how little money you make, it’s nearly impossible to get these loans thrown out. If you’re a recent graduate who’s struggling with student loans and would like to talk to an Hawaii bankruptcy lawyer about your situation, please send a letter or call. 1330 Ala Moana Boulevard #202, Honolulu, HI 96814, (808) 554-0104

Remember, some student loans can be handled in bankruptcy court. However, you should rely on a professional to determine if your loan fits into that category. And overall, unless you get in touch with a bankruptcy lawyer, you may have difficulty determining if bankruptcy would be right for your situation.

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  Tags:
Student Debt, student debt consolidation, student debt relief

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