This CBS News video discusses the increasing number of Americans that are struggling with student loan debt. The Chicago Tribune reported on September 27, 2012, that a Pew Research Center analysis of government data found nearly one in five of households are burdened by school loans. According to the Tribune, the 19 percent of households affected by school loan debt in 2010 is more than double the share from two decades ago, when 9 percent of households in 1989 owed money for education.
Furthermore, the Tribune also noted that student loan payments are equal to nearly a quarter of the income for individuals with incomes in the lowest fifth nationwide. The Tribune reported that young people and poorer Americans are especially hard hit, as four in 10 households headed by someone younger than age 35 have student loan debt. Overall, the Tribune said student loans now make up 5 percent of all debts, whereas they comprised 3 percent just five years ago.
Barring an extreme hardship, student loan debt is very rarely discharged when an individual files Chapter 7 or Chapter 13 bankruptcy. However, filing Chapter 7 or Chapter 13 bankruptcy could allow you to discharge other certain debts, such as credit card or medical bills. Freeing up this additional income could not only help you make your student loan payments, but it may also help you pay off the education balance sooner. Contact our firm at (866) 930-7482 or complete the form on this page to let our Chicago bankruptcy lawyers see how we can help.
Benjamin Brand Services – Chicago bankruptcy attorneys