Wednesday, February 15, 2012

Student Loan Debt Forcing More Borrowers Into Bankruptcy

The National Association of Consumer Bankruptcy Attorneys recently reported that 81 percent of those professionals surveyed said that the number of potential clients with sizable student loan balances has increased either “significantly” or “somewhat” in the last three or four years.

Nearly half—48 percent—said the increase was significant, and 39 percent said the number of student loan cases they handled has risen between 25 and 50 percent in that time. Another 23 percent reported increases of between 50 and 100 percent. In all, 95 percent said they were only able to help a small number of student loan debtors to obtain a discharge of those balances as a result of undue hardship.
As a consequence, there are very real concerns that these outstanding balances could create a debt problem nearly equivalent to that observed during the housing meltdown. The average college graduate carried a debt bill of $25,250 in 2010, up 5 percent, and education debt burden has grown 47 percent for those between 35 and 49 percent.

Read the rest of the article at Business Insider

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