Two out of every three college graduates will leave school in debt – the average student loan balance is $24,000. For the cost of a new car, many will earn degrees that will pay for themselves many, many times over. However, problems arise when private loans, predatory lending practices and for-profit schools contribute to a student being overburdened by debt. Especially in cases where the earning power of the degree is debatable.
The Denver bankruptcy attorneys at George T. Carlson & Associates understand the challenges of dealing with student loan debt. Under most circumstances, student loans can only be discharged if it can be shown that the loan poses an undue hardship on the debtor and his or her dependents. However, by eliminating other debts – including credit card debts, negative equity on vehicles and bad mortgage debts – student loan debt can be more readily repaid in cases where winning forgiveness is not an option.
Federal Student Loans v. Private Loans
Some members of Congress are attempting to crackdown on the worst abuses of private schools and for-profit universities. Problems include:
- Schools that saddle students with $50,000 or more in debt for 2- or 4-year degrees with questionable marketability or that qualify students for careers with relatively low wages.
- Private student loans, which are not eligible for the relief programs available through federal loans, which can include repayment assistance and debt forgiveness.
- High interest rates and sky high payments – payments on a federal student loan might be $200 a month, while the same loan through a private entity could cost $700 or more.
Consulting an experienced bankruptcy attorney in Denver is a critical first step when it comes to protecting your rights and your current and future financial well-being. Many student loans organizations and for-profit colleges are as aggressive in collections practices as they were when it came to issuing the original loans. Filing for bankruptcy protection can provide you and your attorney with the time necessary to review your personal financial situation and decide upon the best course of action.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. Serving clients in Denver and throughout Colorado, including Aurora, Englewood, Lakewood and Boulder.
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
