Student loan debts are no easy debt burden to manage, even for the immediately successful graduate. The lure of student loans promises big returns on a financial “investment” of one’s future, but has begun to take another turn in recent years. Economic factors have driven many graduates into financial insolvency over student loan debt repayments.
One After Another
The weak job market hasn’t been able to deliver what was promised to the college freshman just four or five years ago. Entering the career field with upwards of $30,000 in debt or more many graduates find themselves unable to make their payments on such a mediocre salary, if lucky enough to find employment at all. Add in factors of mismanaged credit cards during the college years and the unexpected trip to the hospital emergency room and a financial disaster quickly arises.
In 2005, the bankruptcy laws were changed to disqualify student loan debts from protection. Near impossible to find relief from these debts there is a call out to Congress to review the idea of reinstating private student loan debts into bankruptcy. In this economy, graduates desperately need some form of relief if they are to be successful business owners or employees and contribute to economic recovery. Even if no law change is possible, consumers are still pushing for President Obama to at least continue the current hold on federal student loan interest rates, which are estimated to save debt holders around $1,000 per year in interest.