More Atlanta College Students Are Defaulting on School Loans
Too bad they don't teach you about debt in college - maybe more of us would be able to afford our student loans.
Not surprisingly, the economy seems to be having an effect on loan default rates for college students. Forty percent of students at private universities now default on loans, according to a report by The Chronicle of Higher Education. Community college rates aren't much better, with 31 percent of students unable to foot the bills.
Look, it's no cakewalk to get through school, let alone hold down a job and pay for a place to live, a car to drive and food to eat - all while paying down debt. But if you default - rather than get the help you need - you could do serious damage to your future finances.
It's easy for student loans to take a backseat when you've got more immediate expenses to worry about. But don't think defaulting won't catch up with you. If you're still in college, failing to pay your loans means no more money for school. Already graduated? The government can forcibly seize loan payments right out of your bank. And defaulting on large loans won't do any favors for your credit score, making it harder to get home loans, car loans, rentals or credit cards for an affordable rate - if at all.
A decade ago, discharging student loans was as simple as filing for Ch. 7 bankruptcy. Nowadays you'll need to show paying off the loans would present a substantial hardship. But even if that's not possible, bankruptcy may still be a solution. By helping you lower the other debts in your life - like an unaffordable mortgage, an unpaid car loan or overwhelming credit card debts - you'll free up more cash to finally unburden yourself from your college loans.
If you're struggling to pay student loans, consider a free, no-obligation personal debt analysis with an Atlanta bankruptcy attorney. As a professional familiar with the ins and outs of bankruptcy law, your attorney may be able to identify a solution that's right for your unique situation. All you've got to lose are those student loans.