Author: Law office of Nicholas Baker
“Bankruptcy Attorney”
For decades, parents have clawed their way through stressful (and sometimes hostile) work environments in an effort to try to help make sure their children could have a better life by sending them to college. However, as the College Boards Annual Survey of Colleges reports, the cost of tuition has been skyrocketing by close to 400% since 1985 at our nation’s colleges and universities. For most American’s, student loans must be taken out to pay for the lion share of their college tuition. This rise in tuition has led to America’s college graduates finding themselves collectively in debt by more than $1 trillion dollars as of 2011. This exceeds even our entire nation’s credit card debt.
This explosion of student loan debt has a crippling effect on the borrowers who all believe that they will be able to find a job with a more substantial paycheck than without the degree. B ut graduating with $100,000 in student loan debt and realizing that paying it off means roughly a $700 monthly payment over the next 25 years is a dangerous gamble. Virtually everyone agrees that student loan debt is a serious problem, but there has not been a meaningful consensus on how to deal with this issue going forward to help these student loan borrowers. Is student loan bankruptcy an option after the reform to the Bankruptcy Code that took place in 2005?