Do you find yourself overwhelmed by how much you owe in student loans? You may be like the many Tennessee college graduates who left school and entered the real world, only to find themselves dealing with an enormous amount of debt within a few months of graduation. This can be an impossible burden, especially when dealing with brand new financial responsibilities and other types of debt.
Chapter 7 bankruptcy is often referred to as "liquidation" bankruptcy. Unlike Chapter 13 bankruptcy, which requires debtors to reorganize their debt and enter into a repayment plan, Chapter 7 allows a consumer to discharge almost all of their debts immediately and get a fresh financial start. One thing that Chapter 7 bankruptcy cannot discharge, however, is student loan debt. However, there has been a recent initiative to change this and to allow student loan debt to be discharged under Chapter 7.
Tennessee families are all too familiar with the difficulty young people face after graduation. According to the Department of Education more than 3.6 million students entered into the repayment period on their loans between Oct 2008 to Sept 2009, and more than 320,000 fell behind in repayment of those loans by one year or more by the end of September 2010.
Student loans are the biggest source of consumer debt in the United States. Accordingly, there has been a lot of discussion concerning bankruptcy exemptions and private student loans in Tennessee and across the country.
Tennessee residents may be aware how many young American college graduates are struggling financially, just as they are trying to begin a career. According to recent reports, college debt is now passing the $1 trillion dollar mark, and it is only expected to grow. While college loan debt is within a category of bankruptcy exemptions that cannot be discharged through bankruptcy, the new federal Consumer Financial Protection Bureau is trying to change that particular rule.
Tennessee college students and recent graduates understand the financial burden that accompanies receiving a good education. If ever-increasing tuition rates were not enough to raise concerns among college students, the U.S. Public Interest Research Group Higher Education Fund recently released a report alleging that some colleges have been making secret deals with banks that simply add to the financial challenges faced by students and recent graduates.
With a highly-competitive job market in Chattanooga, Tennessee, and across the country, people are looking for ways to distinguish themselves as the most qualified person for a job. As such, this tight economic situation has pushed many people to go to college or pursue further education. While advancing one's knowledge is a worthy goal, there have been side-effects for these actions: Many people have taken on high levels of student loan debt to finance their education.