In a difficult economy, it can be very challenging for job applicants to distinguish themselves from other people applying for the same position. Often, people will pursue a degree in the field in order to be more qualified than other applicants. In many cases, these individuals do not have the resources available to fund their education, so they have to take out student loans.
Once they have finished their schooling, many people experience significant problems trying to find adequate employment. Some will take lower paying jobs in an effort to make ends meet, while others will remain out of work while they continue their search. Despite these challenges in finding suitable employment, these individuals will still have to make payments on their student loans once they become due. This can create severe financial issues for individuals who are already experiencing problems paying their bills.
Student loan debt is unique as it is often not dischargeable under the bankruptcy process, except in cases of undue hardship. This may be a difficult standard to meet. Bankruptcy may still allow these people an opportunity to organize their finances in order to repay their student loans.
Some legislators have been considering making some changes to the laws to require colleges and other secondary schools to have a more personal stake in the loans that their students take out. This would require the institutions to educate borrowers on the impact that the burden of student loans will have on their future. They would also mandate that schools with high rates of default on loans be penalized, which could force the schools to better assist their students with l adequate employment opportunities after they have received a degree.
Individuals who are not current with their payments may find themselves facing collections actions from their lenders or servicers. Borrowers need to take these notices seriously, as further financial problems can result. Additional fees, costs and interest will be incorporated into the balance which will create further hardship.
If you have questions about dealing with your student loan debt, you should discuss your concerns with an experienced bankruptcy attorney. An attorney will be able to provide you with an overview of all of the possible options that you will need to consider, and help you determine which course of action is best for your financial situation. Most importantly, do not delay or ignore your student loan debt.