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Student debt “overwhelming” for many recent college graduates

On Behalf of | May 24, 2013 | Chapter 7 Bankruptcy

Well more than half of the 1,400-plus respondents in a recent Wells Fargo survey describe personal debt – credit card obligations and especially student loan debt — as “overwhelming.” Fully one-third of them say that, if they could wind the clock back, they would avoid college altogether and instead proceed directly to the workplace.

Such is the dire state of affairs for many of America’s so-called “millennial” generation, those ranging from their early 20s to early 30s who have graduated with what is essentially a double-edged sword: a hard-earned degree coupled with a daunting amount of student debt and a job market that comparatively disadvantages their demographic.

In seeking to discharge their debts, the amount of which seems insuperable to many young people, a number of millennials are necessarily considering bankruptcy protection. Although student debt is not normally considered as a financial obligation that is dischargeable through bankruptcy, there are exceptions and hardship cases, and increasingly more young people are pleading them.

Notwithstanding the high bar on discharging student debt through bankruptcy, an experienced debt relief attorney can educate young borrowers about how the bankruptcy process customarily works and what it entails. That includes consideration of the types of debt — including credit card debt — that are deemed dischargeable in some instances and that, along with student debt, add to the overall picture of disparity for many college graduates who say that they are over their heads with financial problems.

A study conducted by Fidelity Investments concludes that the average debt load of a 2013 college graduate in the United States is $35,200. With total outstanding loans considered, student debt tops all other types of debt owed in the country, with outstanding loans now exceeding $1 trillion. That far eclipses credit card debt, which stands at around $800 billion.

The first step toward realizing a fresh start for many saddled grads is a candid and condifential conversation with a proven debt relief attorney.

Source: Press TV, “One third of millennials regret going to college,” May 23, 2013


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