Often, the news about student loans and debt management involves talking about the negatives of student loan debt. Memphis residents may be interested in a new study that has revealed that the growing number of student loans does have an upside, despite any concerns over future debt relief.
Students all around the country are taking out more student loans and other types of loans. While having more student loan debt might present future problems for the student, these loans have a positive impact on the economy and on the borrower. A new study shows that while student loan debt is increasing, the fact that more people are borrowing shows that they have more confidence in the economy.
Consumers have also become smarter about their debt. While student loan debt is up, other forms are down, showing that consumers have become more mindful of other types of debt. Overall, borrowing is up $11.4 billion in September as compared to August. While borrowing in student loans is up $14.3 billion, credit card debt is down $2.9 billion. Even though more and more students are borrowing money to go back to school, they are also keeping an eye on the amount of debt they incur.
In these situations, financial planning and debt management become even more important. Students must be cautious of taking out more loans than they will be able to repay, especially if the current job market makes it difficult for them to find work after graduation. They must consider all their options and plan their debt effectively. It is also important for students to remember that if they have too much student loan debt, it is not always discharged in bankruptcy.
An experienced bankruptcy attorney can help students review their student loans and other unsecured debts, and can help them assess options that will allow them to avoid declaring bankruptcy.
Source: Christian Science Monitor, “Student loans rise, boosting consumer credit,” Christopher Rugaber, Nov. 9, 2012