Record Number of Chicago College Students Default on Student Loans
Sometimes the most important thing we learn about in college isn't in our textbooks: debt.
With college tuitions at an all-time high, more students than ever are taking out loans - and now, they're defaulting in record rates. Over 30 percent of community college students defaulted on loans, according to The Chronicle of Higher Education. That number climbs to 40 percent for loans made to students at for-profit universities.
It's hard to make ends meet when you're going to school and working - heck, even when you're finished with school and working. But having thousands of dollars in unpaid student loans can haunt your finances well into the future, say Chicago bankruptcy attorneys. And while discharging student loan debt isn't as simple as it used to be, there are options available.
Whatever you do, don't ignore the situation. Failing to pay back what's due does more than lower your credit score. If you're still in school, you lose the option of future financial aid - meaning you may not be able to afford the rest of your degree. If you've already graduated, Uncle Sam can seize your paycheck and tax refunds straight out of your bank account. And when you go to apply for that car loan, mortgage, credit card or new apartment, expect to pay the highest rate - if you qualify at all.
So what's the solution? Until the late 1990s, you could simply discharge most loans through bankruptcy. Today, you'll have to first prove that payments present an undue hardship. But even if you don't qualify to discharge your loans, bankruptcy may be able to help. For instance, if you're also struggling to pay off other debts, filing for bankruptcy might be able to lighten your load so you can focus on paying off student debt.
If student loans are threatening to ruin your future, it might be worth it to have a Chicago bankruptcy attorney take a look at your finances. It's free, there's no obligation and, since our attorneys are familiar with the law, there's a good chance we can identify a way to help. Try a free personal debt analysis today - and you might just free up your tomorrow.