For some who are drowning in medical debt, seeing student loan debt forgiveness may seem galling. After all, many Florida residents feel that any debt forgiveness should start with unavoidable debt, like medical debt. Of course, many Florida residents have both medical debt and student loan debt. Some experts speculate that because of the similarities between student and medical debt, medical debt may receive forgiveness next.
Student debt forgiveness
The Biden administration recently announced that some student loan borrowers will be able to see between $10,000 and $20,000 forgiven from their loans. This is expected to help over 40 million Americans. For those borrowers, this may free them of the yoke of student debt. For many more, that forgiveness is just a drop in their debt bucket.
The yoke of medical debt
The burden of medical debt is just as much of a yoke as student debt. Indeed, 23 million people across the country struggle with about $200 billion in medical debt, and about half of that debt is inaccurately reported on their credit bureaus. This is a double whammy because they have to deal with harassing debt collectors, in addition to the negative effects of a lowered credit report, even though their credit.
Debt accumulates and snowballs
Medical debt can be the proverbial straw that breaks the camel’s back as debt accumulates and snowballs. For example, if your health suddenly declines, you cannot work, which means you cannot pay the medical debts. The stress of medical debt causes further medical issues, continued loss of income and a snowball of debt, which only exacerbates any other debt.
Just a hope right now
Unfortunately, the experts calling for medical debt relief or opining that it will come are basing their expectations on the similarities with student debt, not actual action from the current administration. This means that, if your debt struggles include medical debt, bankruptcy might be able to provide relief right now.