The Role of Student Loans in Personal Financial Troubles

Enormous student loan balances are continuing to have a large impact on personal finances. More and more graduates are finding that they must rearrange life goals—both personal and financial—around their student loans. If you are being overwhelmed by debt then speak with a knowledgeable bankruptcy attorney today about your options.

The vast majority of students attending college these days could not have gone to college if not for the widely available loan opportunities. Student loans are obtained by either the student's family or by the student him- or herself. While most loans do not require any payment while the student is attending college or university, payments are expected at some point after graduation (depending on the terms of the loan). The 1965 Higher Education Act was essentially the start of the student loan crisis as we know it today. The act made subsidized student loans readily available but rising tuition costs at colleges and universities, as well as increased interest rates, has changed things drastically. What was once a solution that made it possible for virtually anyone to obtain a college education is now saddling graduates with an enormous amount of debt which causes them to put off things such as getting married, buying a home, having children, etc.

Skyrocketing Tuition and Five-Figure Student Loan Debt

According to data provided by the American Student Assistance organization, the average student debt balance has increased nearly 60% just since 2005. As of mid 2010, student loan debt balances were higher than credit card debts at over $27,000 on average for each student. At the same time, the cost to attend college has gone up more than 1,000 percent since the 1980s. This situation creates big problems for many graduates as they try to cope with student loan payments while trying to build a family and their career. Like tax debts, Student loan balances cannot be absolved by declaring bankruptcy in most cases which can leave an individual with feeling that their only option is to become delinquent on their payments—risking wage garnishment, liens and destroying their credit.

Do you need help handling your debt situation?

Contact us at the Hensel Law Office, PLLC as soon as possible to discuss your case and how we may be able to help you reduce or eliminate your debts. A skilled bankruptcy lawyer with us may be able to help you find a real solution to your situation. There is no charge for the initial consultation.