If one thing is true of going to college, it is that getting a college education is expensive. Tuition increases each year and many college hopefuls are finding themselves having to make tough choices about their college education.
Student loan debt is the largest source of debt for young Americans under the age of 30. As college students graduate to find themselves with loads of debt and a less than fruitful job market, many are left holding the bill without the means to repay what they borrowed.
The Costs Of An Overpriced Education
A study conducted by the Institute for Financial Literacy found that college graduates were taking the lead as the fastest-growing group of individuals filing for bankruptcy in the past few years. The study discovered that the number of bankruptcy filers with a bachelor’s degree rose from 11.2 percent to 13.6 percent over the last five years, a percentage that overshadows peers of similar age but lacking in education.
The lure of a college education was based on promises of a brighter future and better financial outcomes than not pursuing a degree. Unfortunately for many college graduates, the state of the economy has proved that no one is exempt from the effects of a recession. Even worse are the limited debt relief options available for student loan debt, which are typically not dischargeable through bankruptcy. However, there are federal programs, such as the Income-Based Repayment program, that offers assistance to debtors experiencing financial hardships.