There are many reasons for debt and just as many types of debt. One major source of debt that can lead citizens to seek debt relief or bankruptcy options is if they are having a hard time dealing with student loan debt. In fact, student loan debt is such a burden on many Americans that Florida Senator Marco Rubio has addressed the issue.
Rubio has publicly discussed his own student loan debt burden recently. He says he recently, at the age of 42, he has finally paid off his own student loan debt and sees the struggles of others with student loan debt as an issue for him to address. The student loan debt in America has tripled over a 10 year period.
While experts don’t foresee an economic crisis looming from any student loan defaults, it is a serious concern as those who carry student loan debt struggle with other economic issues. It can affect the ability to afford a house, keep up with a mortgage or deal with other economic issues, such as finding employment that helps those with student loan debt repay that debt. One option helping some is the ability to refinance student loan debt, much like refinancing a mortgage. Even though student loan debt currently is not dischargeable through bankruptcy, filing for bankruptcy relief may free up other funds that could then be applied toward any lingering student loan debt.
There is no magic way to help those who struggle with effective debt relief, either from student loans or mortgage problems. Knowing the options available for debt relief can help those in debt choose the best way to handle and reduce any kind of debt. Options such as bankruptcy and loan modifications can be a valuable tool for any Florida resident who looking to get out from under any debt and start anew.
Source: USA Today, The long-term impact of student-loan debt, Pooja Bhatia, March 3, 2014