Student loan debt is a major concern for today’s students and recent graduates. With the cost of higher education rising, more students are financing their future by taking out privately funded and publicly-backed student loans. In fact, the US has around 44 million people with student loan debt. Those 44 million have around $1.5 trillion in overall debt. While some are able to handle the massive debt load, others run into financial problems. When they do, filing for bankruptcy can be a challenge. The law makes it very difficult to discharge student loans in bankruptcy. Having an experienced attorney on your side is essential when you’re trying to file bankruptcy for student loans.
Burdensome student loan debt and its negative impact
The average borrower in the United States has more than $30,000 in student loan debt. For some, including those who have been to graduate school, that number can balloon well into the six figures. Many law students, for instance, have complained about trying to make it in a difficult legal field where they’re saddled with $200,000 or more in student loan debt. If you have this kind of debt load, then you know how difficult it can be. Your monthly payments may cost thousands of dollars. If you fall behind, it’s likely you’ll start to receive phone calls and letters demanding payment.
Debt has a tendency to cause stress, hurt your home life and even make it difficult for you to succeed in your professional life. This is where bankruptcy comes into play. People who have run into financial problems for one reason or another and have no capacity to pay off their debts can reset their financial lives by declaring bankruptcy. It will get you out from under the burdensome collection attempts and the stress of failing to pay your bills. Of course, it’s not as easy to discharge a student loan as it is to get rid of an old credit card debt. You’ll need a skilled attorney to assist in the matter.
Relevant law on bankruptcy and student loan debt
Because the amounts are so large and the lobbying power of student loan lenders is so great, laws have been put in place to restrict your ability to get rid of student loan debt in bankruptcy. Whether you have a loan guaranteed by the government or one provided by a private lender, you will need to show severe financial hardship to have a chance at getting rid of the debt. While you need to show no such circumstances to declare bankruptcy generally, the bar is much higher when it comes to student loans.
How a good lawyer can help
Good lawyers are there to help people who have student loan debt. Lawyers like Stephen Labiak are able to look at your situation and come up with a plan to discharge your debt in bankruptcy. If you find yourself overburdened by big loan payments, then give Stephen Labiak a call today. He can help you take back control of your financial situation.