Ime Ekpo
9
All posts from Ime Ekpo
Ime Ekpo in $ Financial Freedom Chasers,

3 Facts About Student Loan Debt

In 2010 student loan debt passed the mark of credit card debt, throwing an expected surprise to Americans. It has went over $1 trillion making it the most common form of debt in households. Student loan debt is a matter that will never go away, it not only affects students and graduates, but their parents, grandparents, children or future children. Ever since student loan debt in America skyrocketed it certainly alerted consumers about eyeing their student loan debt, take it out of the dark and DEAL. Here are just 3 facts about student loan debt.

1. Your cosigner might suffer too.

Student loan debt reaches out to all ages. There is over $148 billion of outstanding student loan debt held by about 6 million people over 50 years old, according to the Federal Reserve Bank of New York. The debt can be their own, or is cosigned for their children and grand children or a combination of both. This is the down side about cosigning for a loved one, you will also be held responsible. Try to seek out all options before deciding to cosign a student loan such as a cheaper school, participating in work study programs, and even a scholarships.

 2. Jobs and loan forgiveness

There is no way to escape student loan debt. As it is factual that some jobs will not hire someone with outstanding debt, there are some exceptional careers that provide student loan forgiveness and don't lessen your chances of getting the job.  There are public sector and humanitarian careers the have loan forgiveness available. You will be able to follow the career path you desire without being shunned away because of your expensive degree.

3. You may not be able to file for bankruptcy.

Back in 1977 federal student loans were banned from being discharged in bankruptcy by Congress, then with the bankruptcy reform in 2005, private student loans were added to the ban. Only if you can prove "undue hardship" your student loan debt has a chance at being legally discharged in bankruptcy.  There are a lot of requirements and restrictions to meeting undue hardship, it is very difficult to qualify for. Unless you are at the bottom of the barrel, have exhausted all your options and are not doing good in life with no hope to get better, then you can consider filing your student loan debt for bankruptcy.