At this point, we all know student loans are crippling the American people, and especially young people 18-35. It’s already pushed back the age at which young people are getting married and having kids. It’s keeping our best educated population from pursuing the jobs they’ve been trained to do. And it’s hurting the parents, spouses, and economy that have to support this debt.
And the problem doesn’t seem to be going away any time soon.
If things continue as they are:
- soon almost every American will have student loan debt, and
- half of us won’t be paying it
Need help getting out of debt?
That’s right: The Wall Street Journal has reported that over 40% of student borrowers are not paying their student loans. That’s approx 9.6 million people either in default, deferment, or postponement. All while we’ve reached $200 BILLION in student debt!
And why are we not paying? Because
- we don’t know how to, and
- we simply can’t
1. We don’t know how to pay our student loans.
There are options out there for creating payment plans on student debt, but many debtors don’t even know these options exist. The government, failing in telling people their options in time, is instead sometimes garnishing wages and taking from tax returns. Most people would probably prefer to know their options over having it taken from their paychecks by surprise.
2. We can’t pay our student loans.
Americans are dealing with unemployment and underemployment, massive investment losses from 2008, higher housing prices, and devastating insurance and medical bills. These issues are hitting young people the hardest – the very group that’s been most encouraged to take out loans for higher education.
Unfortunately, right now the law makes it difficult to get rid of student loans in a bankruptcy, although there are some exceptions. Instead, our Memphis bankruptcy lawyers work with student loan debtors to get rid of their other debts so they’re better able to deal with student loans and the many other expenses that are a part of life.
Chapter 7 bankruptcy can be a huge help to anyone with serious debt:
- It stops wage garnishment
- It stops lawsuits against you for your debts
- It stops the harassment when you can’t pay your bills
And it can give you the financial freedom to get your education costs under control.
If you’d like to talk more about Chapter 7 bankruptcy and what it can do for you, contact me today online or call 901-327-2100. The conversation is free.