As we’ve discussed before, student loan debt has grown to record amounts in recent years. The Federal Reserve Bank of New York says student loan debt increased 4.6 percent in the third quarter and now sits at $956 billion. Shockingly, student loan debt has increased more than 56 percent in just five years.
What’s even more disturbing is that more people are falling behind on their payments. The number of people who are more than 90 days behind on their loan payments has reached 11 percent.
In addition to the fact that student loan debt is rarely discharged through bankruptcy, federal student loans are easy to qualify for. According to CBS News, “lending standards are practically non-existent.”
Unfortunately, student loan debt may be just one form of debt Florida residents are dealing with. Credit card debt, medical bills, mortgage payments and car loans may be making it impossible for people to keep their head above water. People in Florida who have dealt with debt problems before know how frustrating it can be.
While student loan debt is rarely discharged through bankruptcy, people can turn to bankruptcy to help rid them of other forms of debt. By doing so, people may be able to eliminate their student loan debt in a more timely fashion.
Bankruptcy often offers people the fresh start they have been looking for. The bankruptcy process can be complex, though. Florida residents would be wise to consult with an experienced bankruptcy attorney. An attorney can help guide people through the process. In the end, bankruptcy often begins people down a path to financial security.
Source: CBS News, “Student loan debt nears $1 trillion: Is it the new subprime?” Jill Schlesinger, Nov. 28, 2012