Could Student Loans be the Cause of the Next Economic Crisis?

While America is slowly recovering from the home mortgage crisis experts fear that another financial crisis may be on the horizon. The cause this time? Delinquent student loan payments. According to information obtained from the Federal Reserve Bank of New York, the total for student loan debts grew from about $500 billion in 2005 to about $1.1 trillion for 2013 college and university students and graduates. That's over one thousand billion or one hundred thousand millions! Student debts increased 10 percent over the year before. Tuition has increased 300 percent over the last 10 years which is a major contribution to the reason why so many more students seek student loans. A college degree would be impossible for many if it weren't for the availability of deferred loans. The concern is that when the deferment period is over and it is time for payments to be made on those loans graduates may find that they are not in a strong enough financial position to keep up with payments. Graduates may find themselves having to make very difficult decisions between either having a family and a home or keeping up with debt obligations. The inability to pay for student loans may result in another economic bubble burst in coming years if employment and income opportunities aren't healthy enough to allow graduates to make it. Consult with a knowledgeable bankruptcy lawyer today if you want to know more about your options for dealing with overwhelming debt.

Are you falling behind on student loan payments and other debts?

If you have missed payments on your student loans then you are likely experiencing difficulty in keeping up with other financial burdens as well. It is important to know exactly what your options are in this situation because not all options will help resolve issues concerning student loans specifically. For instance, many student loans and tax debts cannot be absolved by personal bankruptcy protection. Filing for bankruptcy protection, nevertheless, may be the right option for you if it takes other debts off your plate and allows you to then be able to keep up with your student loan payments. There are other possible solutions such as debt consolidation, loan modification, etc. that a bankruptcy attorney with us at 1^st California Law, Inc. may be able to help you with. Please contact our caring legal team today and discuss your situation with an attorney dedicated to helping clients to a brighter financial future!