Find Out the Latest News on Student Loan Debt
We know that the last thing you probably want to talk or think about is politics. Do not worry – we are not going to get political on you here. However, you may have seen many politicians discuss student loan debt and that is something we do want to focus on.
- Many are calling for the forgiveness of most or all student loans in this country.
The student loan problem in this country has been called a crisis, and we have to agree with that statement. We hear from people every day about how their student loan debt is keeping them from prospering. We also know it can cause many people to go into bankruptcy.
Today, we want to talk about the implications of student loans on your finances. If you are overwhelmed with debt, you should speak to a qualified Arizona bankruptcy attorney who can help you get through this.
What is this forgiveness about?
We know that you may be excited to hear about the possibility of your student loan being forgiven. Did you know that the latest reporting numbers show that Americans have over $1.4 trillion in student loan debt?
- The average student loan debt for individuals is $37,172.
Many students are manipulated into student loans. Due to the high cost of college, many students feel like they have to do something to afford an education, and loan providers make it very easy to obtain a loan. They also usually do not educate students about what that debt will do to them after they graduate (or do not graduate).
Student loans can affect everything we do in our lives. They can prevent us from obtaining other loans, lower our credit scores, and keep us from buying a home. Wages can even be garnished by the federal government for failing to pay student loans.
- In almost all cases, student loans cannot be discharged through the bankruptcy process.
We often get many questions about whether student loans can be wiped out in a Chapter 7 process. These loans are not treated like other debt and can rarely be eliminated. There is a pathway to having student loans wiped out in bankruptcy, but it is rarely successful. You have to show the court through an adversary proceeding that there is no way you will ever likely be able to pay off your student loans before they can be discharged.
However, that does not mean there is no hope. If you do have an income and qualify for Chapter 13 bankruptcy, your student loans could be bundled up in repayment plans that are worked out with the court to satisfy your creditors.
These repayment plans usually last for three to five years, and you will be on the line for the remaining student loan debt when the payment plan is over – but you will have had that time to get yourself back on track and ready to resume student loan payments.
Click here for news on student debt relief.
Find an attorney to help you through this
Whether or not student loans are forgiven is way above our pay grade and is something that will be decided by politicians in Washington. What we do know is that real Arizonans struggle with debt each day. If your student loans or other debts are overwhelming you and you have no other options, please speak to an Arizona bankruptcy attorney today.
Bankruptcy is not an option for everyone, but it has helped many people reclaim their lives and start fresh. There is no reason not to explore all options available to you so you can move forward.
Click here for information on how does wage garnishment work for medical bills in Arizona?