The National Association of Consumer Bankruptcy Attorneys (NACBA) is launching a new initiative aimed at restoring bankruptcy protection for student loan borrowers. 860 members responded to the survey asking about experiences with potential clients who have tried to discharge student loan debt. The message of the survey results was clear: ‘unmanageable student loan debt threatens to reach crisis proportions in the not distant future if Congress does not restore bankruptcy relief.’
Individually, college seniors who graduated with student loans in 2010 owed an average of $25,250, up five percent from the previous year, according to a report from the Project on Student Debt at the Institute for College Access & Success (TICAS). Collectively, 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. Americans now owe more on student loans than on credit cards, according to the Federal Reserve Bank of New York, the U.S. Department of Education and others. Additionally, because there are fewer people with student loans than there are credit card holders, the debt burden on the individual borrower is considerably higher.
Although educational borrowing is up for every age group over the past three years and young people still carry the biggest student loan debt burden, borrowing has grown far more quickly for those in the 35 to 49 age group, according to an analysis by the credit score tracking site CreditKarma. Bills are pending in the House and Senate to restore bankruptcy protection for private student loans. NACBA supports those bills and is asking Congress to go further and restore bankruptcy relief for government education loans.
To read more on the report prepared by the National Association of Consumer Bankruptcy Attorneys (NACBA) visit:
http://nacba.org/Portals/0/Documents/Student%20Loan%20Debt/020712%20NACBA%20student%20loan%20debt%20report.pdf
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
