More Parents Struggling with Kids’ Student Loan Debt in Chicago
Young adults aren't the only ones struggling with the nation's $900 billion student debt load.
Parents are shouldering the burden, too, say Chicago bankruptcy attorneys.
As SmartMoney reports, borrowers over the age of 40 are responsible for about one-third of the country's student debt.
Some of these borrowers are still paying for their own school loans. But most are well-meaning moms, dads, and grandparents who are pitching in to help college-age kids and grandkids pay for school amid rising tuition costs.
Roughly 17 percent of parents of this year's college graduates had taken out federal Parent PLUS loans, up from 10 percent a decade ago. The average balance on parental loans is $34,000.
Even when students take out loans from private lenders, banks are increasingly requiring parents to co-sign. If students miss payments, their parents are on the hook.
Unlike credit card debts or personal loans, student debt cannot typically be discharged through an Atlanta bankruptcy - even if the borrower cannot afford to make payments. As a result, many parents must deal with credit damage, creditor harassment, and foreclosure when their children default on the bills.
But while it may seem like there's no way out of the student loan trap, students and their parents alike may be able to find relief with Tennessee bankruptcy.
Just because filing for bankruptcy can't ease student debt doesn't mean it can't ease other forms of debt.
Often times, making payments on education loans would be manageable if it wasn't for credit card debt, medical bills, and tax obligations. By reorganizing unsecured debts - or eliminating them completely - borrowers can often free up more monthly cash, begin rebuilding credit, and even prevent foreclosure.
It's only natural to want to help family members through their money struggles. But by being helpful, we shouldn't have to jeopardize our own financial future.
With the right Atlanta, Tennessee, or Chicago bankruptcy plan, you can help your family without hurting your bottom line.
Learn more about what bankruptcy can do for your financial situation when you speak with a professional bankruptcy attorney in Atlanta, Chicago, or Tennessee. Call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 to schedule your complimentary debt evaluation.
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Additional Resources:
Student Loans Sink Mom and Dad, by AnnaMaria Andriotis, SmartMoney