According to estimates released by the Federal Reserve Bank of New York, the average student loan debt burden for students under the age of 30 has risen since 2005. Today, over 3 million students are suffering with private student loan debt and owe an estimated $150 billion. Now, more than ever, young professionals are burdened by surmounting private student loan debt.
Bankruptcy Protection for Students in Debt
If you are suffering with the burden of student loan debt, this shocking statistic can be something that you identify with completely. Many students, just like you, are uncertain of their future and finances. With the rising costs of tuition across the nation, unfair lending practices, inability to pay high payments in an unstable marketplace, issues in dealing with lenders, or high interests rates with no options for relief. Fortunately, there are options that you can take with the help of a Bankruptcy attorney who is well-versed in all areas of bankruptcy law.
Relief Under The Fairness for Struggling Students Act of 2013
Due to legislation that was passed in the late 1970's, many private college loan borrowers have been trapped with no options for debt relief under bankruptcy protection. The Fairness for Struggling Students Act of 2013 is an attempt to reform this legislation. Once put into effect, the Act will revise federal bankruptcy law to allow some private student loans to be dischargeable under the protection of bankruptcy in cases involving financial hardship.
Other Bankruptcy Alternatives
Of course, the law also allows students other alternatives. Field experts always suggest that students stay current with their loans in order to completely avoid default. This is not always possible for struggling students, and understandably so. If you are in default, or if you are not in default but fear that you will no longer be able to make payments, you must speak with a professional who can inform you of your legal options.
Your options may include:
- Loan rehabilitation
- Loan modification
- Loan consolidation
- Loan forgiveness
- Loan deferment
- Repayment plans
Only an experienced attorney can guide you and inform you about the best decisions regarding your specific financial situation. What worked for a friend, relative or neighbor may not work for you or may cause even more financial headache.
Seek Legal Counsel from a Bankruptcy Lawyer
Obviously, the concern for your college graduates rises as the nation's upcoming generation is burdened with huge debt. Unlike other federal loans, private student loans are not generally dischargeable through the process of bankruptcy. As a result, private student loans have become among the top causes of financial debt for students across the nation. Because private student loans typically do not come with affordable payment plans, loan forgiveness, deferment options, or cancellation rights, young students can struggle for years into the future while trying to pay back their loans.
If you or someone you love is struggling with private student loan debt, do not think that you must live the rest of your life in financial ruin. It is highly encouraged that you seek legal guidance from a Bankruptcy lawyer in your area. Make certain that your legal counselor has experience and knowledge of all bankruptcy laws, including areas pertaining to student loans, state laws, and federal legislations.