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The unemployed Gen Ys head in mass To Graduate School.

30 Jun 2010 03:17 pm

The recession in the United States is increasing demand for at least one very expensive service: a graduate education. This year there has been an increase of 13% enrollment.
College is an expensive decision. Even a student who receives substantial financial aid will often have outstanding credit card debt to cover their extra expenses, including food. With the current state of the economy, this trend will continue to rise.

So, No Job And $60,000 plus In Student Debt. What to do?

Under federal law, student loans are a very rare form of debt where one usually is not permitted to discharge via personal bankruptcy. This was implemented to avoid having recent graduates from declaring bankruptcy right after graduation and skipping out on their student debt. Consequently, student loans can only be discharged in cases where the federal bankruptcy court determines that repaying the loan would create “undue hardship.” What a subjective requirement!

Bankruptcy will most likely NOT eliminate student debt, however if you also carry outstanding credit card debt, are late in rent or mortgage payments, or have overwhelming medical bills; Bankruptcy protection can save you thousands of dollars, improve your credit and give you the space to breathe needed to successfully repay your school loans.

Give us a call for a free consultation with an Attorney in New Jersey.

View the map below for an info-graphic on student debt in the USA: