The Commercial Appeal reported today that the originally intended 2-4% tuition increase could actually spike closer to 8% in Tennessee.

The new, higher projection was caused by Gov. Bill Haslam’s failure on his budget proposal to fully-fund the performance outcomes-based formula for higher education created by the state legislature in 2010.

What does this mean for college students in Tennessee?

In general, a tuition increase means more student loans and more student loans means more debt.

Unless you go to the University of Memphis.

“For the University of Memphis, our position is very clear: We don’t propose a tuition increase; we don’t want a tuition increase,” Interim President Brad Martin said.

It remains a little unclear as to whether there will be a bigger spike in tuition, however the student loan debt increase doesn’t seem to be slowing down.

In America, total student loan debt tops $1 trillion.

With student loan debt as high as it is, and the need for student loans because of the consistent increase in college tuition, many families wonder if college is even worth it. Heck, some four year college degrees can cost as much as a house to earn.

If your dream involves a college eduction, then college is absolutely worth it. The fear of having to take out student loans and pay them back should not withhold you from taking that step. Just borrow student loans wisely – don’t take out what you don’t have to.

If you’re deep in debt because of your student loans and you don’t know how you’re going to get out and live your life, there’s help for you. You can file for bankruptcy with our experienced attorneys.

You can include your student loans in a chapter 13 bankruptcy. This will allow you to either reduce or delay your student loan payments.

Let me explain.

If you can afford the payment, reducing your student loan payments will allow you to include the student loans in your bankruptcy and pay over 5 years at a lower interest rate.


If the debt is just too high, you may not have to pay anything towards your student loans during your bankruptcy repayment plan, but instead just pay the interest. Then after 5 years, when the rest of your debt is paid off through the repayment plan, you can continue to pay your student loans.

Bankruptcy isn’t as scary as you may think. In fact, it’s not scary at all because with the right attitude and some patience, you can come out of a bankruptcy better than you went in.

At Darrell Castle & Associates, we offer a 14-week program called “7 Steps to 720” that will teach you how to re-establish and rebuild your credit the right way with tips and tricks the credit card companies don’t want you to know. This program is free for our clients.

If you’re considering bankruptcy or if you have any questions, please contact us today, either online or by calling us at (901) 327-2100.