Loan debt has become the new normal for millions of students across the nation. Struggling to keep up with monthly rent payments, bills and basic necessities, countless young Floridians have become a point of concern among lawmakers and economic experts. While some graduates are able to financially recover after graduation, others are met with challenges for years to come. Will the state of student loan debt see change in the near future?
Forbes magazine spent time considering this highly debated topic, pondering whether student loan debt could find relief through bankruptcy. Taking note of current modifications with student loan programs, Forbes goes on to state that public student loan forgiveness may not always apply to every student. Instead, many have turned to file bankrutpcy; however, certain guideliness nevertheless apply. To qualify for discharge of loans through bankruptcy, students must be dealing with serious difficulties when paying off loans. Students also must also continue to face those difficulties for the full term of the loan, as well as have made good faith attempts to repay borrowed money for higher education.
With bankrutpcy a possible option, Market Watch examines the pros and cons of such a strategy. Stigma against filing bankrutpcy has dissuaded many students from choosing this route; yet at the root of this plan lies the sentiment that consumers should have the chance to start a fresh financial slate. Market Watch brings to attention one case in which a 2007 college graduate faced a lawsuit from his bank demanding the money back that he had borrowed. While a point of contention, some experts on the case have argued that students who filed bankruptcy may be making unnecessary payments on their student loans. If won, this case could affect only a slim percentage of student loan borrowers who turned to bankruptcy, but it could open a new door to dealing with loan debt in America.