Parents of College Age Students Struggling with Cost of Tuition and Turning to Bankruptcy
While college graduates have a harder and harder time finding gainful employment post-graduation, and median household incomes decline…college tuition is on the rise with no end in sight. Regardless of controversies on the subject, many parents still believe wholeheartedly that helping their kids through college is the single most important thing they can do to give their children a better life. In most cases, helping their kids through college means paying for it. Due to this fact, many parents are finding themselves digging into their savings, pulling from retirement funds, stopping retirement account deposits, and even taking out extensive loans to cover the increasingly high costs of college tuition.
It might not come as a surprise, that due to the soaring tuition prices, the bankruptcy courts are seeing more and more parents of college students looking for relief from their overwhelming debt. The increased number of bankruptcy filings for parents has left more than just the parents themselves worried. Legal experts are also concerned with the situation.
A statement was released by the National Association of Consumer Bankruptcy Attorneys regarding the matter and calling attention to the problem. The same experts who warned of the impending mortgage crisis before it was upon us, are now looking straight at student loans when considering the next economic crisis for Americans. According to the experts, the number of parents who take out loans to help pay their kids’ way through college has jumped 75% since 2005. The typical 10-year loan will result in an average of $50,000 in debt. Parents who are already doing their best just to make ends meet are finding that this additional financial burden is more than they can handle.
Many in this situation turn towards bankruptcy. It is, after all, designed to provide individuals and families struggling with debt an opportunity to start over by discharging certain types of debt so they are no longer required to repay the balances owed.
If you find yourself no longer able to make ends meet due to insurmountable student loan debt, contact Westgate Law. Discharging student loans can be tricky – it’s more difficult than other types of debt, but certain exceptions can apply in specific situations. To see if you have legal options regarding overwhelming student loan debt, contact an experienced bankruptcy lawyer today.