In the sphere of national modern day politics, issues of debt and spending seem to dominate almost every discussion. One looming specter in many conversations of both private and government debt is the ever-increasing total of student loan debt. As the average amount owed by those pursuing or finished with higher education continues to rise, many are worried that these debts will make it impossible for future generations to prosper.
While the economy is certainly better than it was at the end of 2007 when the financial crisis really hit the U.S., times are still tough for many Florida residents, especially those who are struggling to pay back student loans. In fact, when it comes to delinquency rates, failure to make payments is more of a problem with student loans than it is with credit card debt.
Going by current consumer debt numbers, while the economy is continuing to struggle, many are still taking on student loan and auto loan debt. The thought is that as the economy continues to improve, consumers will once again feel confident enough to take on credit card debt.
Student loan debt is rapidly spinning out of control. Students are borrowing tens of thousands of dollars for an education. Their plans are to graduate from college, get a good paying job in the career of their chosen field, and slowly start to pay back those loans over the next several years. And while of course this is an admirable goal to have, the truth is there is the risk of taking on student loan debt, not being able to find a job -- or finding a low-paying one not in the chosen field -- and not being able to pay back what was once borrowed.
Although bankruptcy does not currently include the discharge of student loans, some are wondering if law changes could help those struggling with debt after college. For many residents in Florida and across the United States, debt comes from a variety of sources, such as credit cards, loans and house payments. Although bankruptcy can help with most of these debts, due to a 2005 law, student loans are excluded from bankruptcy. A recent report out by the Consumer Protection Bureau and the U.S. Department of Education suggests that Congress should reconsider the law as more and more people struggle to overcome student debt. But some wonder -- would it actually make a big difference?
A college education is very important. However, with the cost of college tuition on the rise and student debt nearing $1 trillion, many Florida residents are starting to wonder if the debt is worth it -- and if it is -- how to even go about paying back that debt.
While student loan debt is surely a burden for a college graduate who is financially struggling, it turns out that this mounting debt is also a burden on the potential recovery of the housing market in Florida and around the rest of the country.
A new report on national credit has revealed that while Florida is improving in certain areas, many residents are still carrying debts, which in turn may end up leading to more people seeking out debt relief solutions.
While filing for a personal bankruptcy can lead to a new financial start, there seems to be an unfair disadvantage to those with student loan debt. However, a new report calls for changes to the bankruptcy laws to allow for more former students to be able to discharge all -- or at least some -- of their student loan debt.
In today's day and age, one of the main concerns surrounding the topic of debt relief is how people are supposed to financially afford going to school. Should they take out expensive student loans for a degree and risk not being able to pay it back? Or should they have a more pay-as-you-go approach, which could end up taking years and year to complete?