In many cases today, young college graduates are not eager to enter the workforce. Years ago, graduates were able to leave college, easily claim jobs and even embark on home ownership in their 20s. Now, many graduates in Pennsylvania are saddled with stifling student loan debt, combined with the fact that the economy is still not as strong as it could be. This leaves many individuals yearning for debt relief as they wade through difficult financial times. Total student loan debt continues to be staggering in the United States.
According to the Federal Reserve Bank, nearly 40 million student borrowers in America had an average of almost $25,000 in student loan debt. More than $1 trillion dollars of total college debt is outstanding, and this amount increased by 11 percent last year. As a result, the burden of student loan debt today is second only to mortgages.
The financial crisis is blamed for some of this increase in college debt. Many individuals who were out of work decided to take out student loans and return to the classroom. In addition, many parents could not help to pay for college, thus requiring high school graduates to take on more debt. At the same time, tuition costs continued to skyrocket.
College debt can easily consume an individual who still is unable to land a job while having the pressure to pay back student loans. However, when a person is having trouble keeping up with his or her financial obligations in Pennsylvania, debt relief is possible through personal bankruptcy. Even though student loan debt currently isn't eligible for discharge through bankruptcy (except in certain hardship cases), filing bankruptcy may help a consumer to erase other debt and thus enable him or her to pay off student loans more rapidly.
Source: wallstcheatsheet.com, Going Debt Crazy: What the Financial Crisis Did to Credit in the U.S., Dan Ritter, Feb. 11, 2014