Are you struggling to make student loan payments? Unfortunately, right now, millions of Americans are, as student loan debt has soared past $1.2 trillion nationally.
CNN had an interesting story recently about older Americans who are having difficulty paying student loan debts. According to the news outlet, right now, 17 percent of all student loan debtors are over the age of 50.
“We’re seeing a rise in the number of people with two generations of debt: People who are paying for their children’s education, but also paying off their old student loans,” said Richard Vedder, director of the Center for College Affordability and Productivity, according to CNN.
One woman the network interviewed was 50-year-old Rosemary Anderson who had $152,000 in student loan debt, which she took out more than 20 years ago. “I will be working for as long as I’m employable. I will never be able to retire,” said Anderson, according to CNN.
Additionally, the network reported that many older Americans who were laid off during the financial crisis have had issues paying off student loans, leading to an increase in defaults.
Is There a Way to Eliminate My Student Loans in Bankruptcy?
Eliminating student loan debt in a bankruptcy is very difficult—you must show extraordinary financial hardship. It is our hope that our elected officials soon make changes to bankruptcy laws, allowing for more people to discharge student loans.
Although you may not be able to discharge your student loans through bankruptcy, you may still be able to free up money for payments through a Chapter 7 filing. This form of bankruptcy allows you to discharge unsecured debts like medical bills and credit card debt, which can help free up money to make student loan payments.
Additionally, a bankruptcy filing triggers an ‘automatic stay’ that puts an end to collection attempts and can end lawsuits brought on by lenders.
If you have any questions about bankruptcy and student loans, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd – Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: In a Chapter 7 bankruptcy, when a debtor’s assets are sold, student loans are given repayment priority.