In Memphis and across the country, recent college graduates are facing mounting debt from student loans. As 1 in 5 households experience student loan debt, many people may be looking for sources of debt relief.
As millions of students head to college in America, many use student loans to pay their way. According to a recent study, 19 percent of households in 2010 had student loan debt. This is almost double what the percentage was in 1989. Analysts say that this is to be attributed to rising college tuition costs and a rise in college enrollment.
While more students are taking out loans to pay for college, they are experiencing difficulty repaying the loans after graduation. With the slow economy students are having trouble finding jobs where they can make enough money to repay their student loans. As a result, students are turning to part-time jobs or graduate school.
With many people facing mounting debt, people are looking for sources of debt relief. While some might consider bankruptcy, it is important to note that declaring bankruptcy cannot discharge student loan debt. Instead it becomes important to look for other forms of debt management. One such alternative is to meet with a certified debt management counselor. These specially trained counselors can help with finances and develop a plan to help get back on track.
Student debt and other types of debt can be a very heavy burden on a person's life. A debt management plan or a personal bankruptcy could be a positive step toward getting out from under that burden.
Source: Christian Science Monitor, "Student loan debt hits record 1 in 5 US households," Hope Yen, Sept. 27, 2012