By: Adria Mulrooney
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Student Debt Forcing Parents Into Bankruptcy
Parents are celebratory at every phase of their child’s life. The journey from childhood to adulthood is one that many only imagine experiencing, but for some, the dream quickly becomes a reality. The first day of childcare seems to be a day filled with anxiety and in a matter of no time, parents can’t wait for them to graduate and leave the nest. There is much excitement associated with the idea of watching your children grow and develop into mature and successful adults. The milestones such as birthdays, first steps, first words, prom, high school graduation and obtaining a college degree are among the many milestones that parents look forward to celebrating. What most parents aren’t considering or looking forward to is the mounting student debt that comes with the process, especially when considering the cost of securing a quality college education.
Student Loans are Drowning Parents
There is nothing new under the sun about obtaining a college education, except perhaps the hundreds of thousands of dollars we see in increase over the years. Parents want their kids to excel and gain a college education but it’s not free and beyond that, it’s quite expensive. The economy allows for very few parents to have the amount of money required to pay for a full college education on hand. This leads most to the option of acquiring loans to pay for college and one loan typically leads to another to cover the entire education. This is acceptable but the plan for students to assist in repayment following graduation doesn’t always work as expected. Very few students graduate college and obtain the job that pays top wages as they enter their career. Therefore, it is the parent’s responsibility to cover the debt onward and this can sometimes be more than they can afford.
Discharging Student Loans
Student loans don’t qualify for bankruptcy discharge but there are some exceptions to the rule. The standard requirements make it possible for extremely rare circumstances to present a student loan eligible for discharge. The filing is challenging and obtaining a discharge is not a guarantee but has been done at least once before. The amount of student loan debt has surpassed the trillion-dollar mark and is steady rising. Without immediate solutions, the number of seniors trying to overcome debt from student loans is alarming.
Know Your Options
There are several financial options for those who are facing mounting student debt. It’s important to understand what services are available and what options are available to you as a borrower. It may be an option to file all other debts in bankruptcy in order to pay the high student loans back. There are bankruptcy attorneys to help you understand Georgia law and how it applies to your financial situation regarding student loan. Your quality of life can change drastically if you have tremendous amounts of student debt hanging over you. Upon retirement, it can become almost impossible to enjoy a standard quality of life if your pension is exhausted repaying student loan debt you acquired to give your children the education they deserve.