This comes as no surprise. Since 1982, college tuition has risen much faster than inflation, and has also experienced extreme spikes of up to 46% from year to year. Tuition and fees increased by around 449% percent from 1982 to 2011. The cost of tuition is at all time highs and is still rising. A typical college graduate today owes $25,000.00 in student loans. This is the average, which means it goes higher than $250,000.00, and as low as nothing, however, the average is $25,000.00.
Student loans are considered non dischargeable in bankruptcy. In addition, most students also have high credit card debt that is incurred during college for normal living expenses. Finally, the difficulty of finding sufficient employment after graduating has only aggravated the situation. The average $25,000.00 student loan debt is also increased substantially by monthly interest payments. "Take it from those of us on the front line of economic distress in America: This could very well be the next debt bomb for the U.S. economy," said William Brewer, the president of the National Association of Consumer Bankruptcy Attorneys.
"The amount of student borrowing crossed the $100 billion threshold for the first time in 2010, and total outstanding loans exceeded $1 trillion for the first time last year."
To learn more about bankruptcy, please feel free to set up your free consultation with our bankruptcy lawyer by calling our office at 832-209-8833. Our office is located at 10222 Gulf Freeway, Suite B-100, Houston, TX 77034.