Tuition is increasing every year causing college to become more and more expensive, leaving a lot of students pondering whether a college education is worth the debt.


Many students take out loans to help them pay for college, opting to pay the money back after graduation. Some graduates have a relatively easy time paying their loans back while some struggle.

According to an article in April’s issue of Bottom Line Personal, some for-profit colleges are even tricking students into paying a lot of money for an education they won’t get much out of.

There are an estimated 3,000 for-profit colleges across the US. They all possess convenient class hours and easy admission policies that attract working adults and laid-off workers. However, some of these for-profit colleges, in which you can earn your degree in two years, charge up to six times as much for tuition as comparable public colleges, in which it typically takes four years to earn your degree.

And not only are these schools majorly expensive, but they leave many students dissatisfied with the quality of education they’re receiving. In fact, half of the students enrolled at 30 of the largest for-profit schools left within four months without getting a degree or diploma.

After fraud investigations last fall involving two leading for-profit colleges, including ITT Educational Services and Corinthian Colleges, the Consumer Financial Protection Bureau urges prospective students to be be aware of possible…

Predatory loans
Some colleges make it very easy to borrow tuition money that include no interest while enrolled in the school. However, some of the post-graduation loans can total as high as 20% and the terms are often unclear.

Promises of a better job after graduation
Some schools are known for inflating their job-placement rates and overstate relationships with big employers to encourage students to enroll. Students may often find that a nearby community college may offer them the same, or a better degree at a much lower cost.

When taking out student loans, I urge you to do so with caution. Don’t take out more than you need. It’s common to see college students taking out student loans in order to live a more luxurious life, but this is a recipe for future debt, and it can easily be avoided.

If you’re currently overwhelmed with student loans you just can’t pay back and you’re getting deeper and deeper into debt, there is relief.

By filing for bankruptcy, you can either reduce or delay your payments through a Chapter 13 bankruptcy. By delaying your payments, you can pay off the rest of your debt to free up more of your income to pay back your student loans after the bankruptcy is complete.

You could also discharge all of your unsecured debts through a Chapter 7 bankruptcy, which will also free up more income to pay back your student loans after the bankruptcy is complete. 

And please don’t feel like a bankruptcy is a bad thing – it’s nothing to be afraid of. A bankruptcy is a second chance to a better financial future. After the bankruptcy is complete, you have a fresh start to re-establish and rebuild your credit the right way.

At Darrell Castle & Associates, we have a great 14-week program that will help you with that called “7 Steps to a 720.” This program will teach you…

  • how to rebuild your credit the right way 
  • why most credit scores are wrong
  • which credit cards actually hurt your credit score
  • how to stop lenders that report the wrong information
  • how to re-establish your credit after a bankruptcy

This program is offered free to our clients.

If you have any questions of if you’re considering filing for bankruptcy, please fill out the “Get in Touch” form below or call us at (901) 327-2100. One of our experienced Memphis bankruptcy attorneys will be more than happy to discuss your situation with you, free of charge.