The Sun-Sentinel reported that across the nation, former students are defaulting on their federally backed student loans at rapid rates. In return, the government is filing lawsuits against former students who default on these loans. The report also stated that more than 4,300 lawsuits were filed across the country against former students who defaulted on their loans in 2011. South Florida reported that 183 lawsuits were filed against residents in 2011 that were unable to make their student loan payments.
Across the state, federal statistics reflect that more than 19,000 residents have defaulted on their student loan payments in the past two years; approximately 1.7 percent more than the national average of those who began repayment in 2009. The number of lawsuits and defaulted loans are expected to continue climbing due to unemployment rates.
Many former students struggling financially are choosing to file for Chapter 7 or Chapter 13 bankruptcy to relieve some of their debt. Although student loan debts are non-dischargeable through bankruptcy, this is a primary way for former students to avoid a lawsuit.
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. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. 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. at www.miamibankruptcy.com.
Tag: student loan debt
Student Loan Debt Reaches the $1 Trillion Mark
As student loan debt in America continues to grow, college graduates continue to have trouble finding jobs and paying off their debt. Instead, many graduates are enrolling in further schooling, which is deferring their repayment but deepening their debt. Student loan debt has now reached the $1 trillion mark, surpassing auto-loan and credit card debt.
This year, the average amount of student loan debt per borrower averaged about $25,000, that’s a 25% increase from 10 years ago. However, it is not just young adults suffering from student loan debt. A recent study revealed that the baby boomer generation (60+ years) owes about $36 billion in student loans. The Federal Reserve Bank of New York reported that about one-third of student loan payments are at least 30 days delinquent, nationwide. Not to mention, since new bankruptcy laws in 2005 were passed, the majority of student loan debts are unable to be discharged through bankruptcy.
President Obama has openly voiced his concern about the student loan debt crisis, proposing many ideas before Congress to aid struggling borrowers. Although Obama has shown his concern, he still promotes the importance of a higher education. Many Republican candidates find his ideas about modifying student loan repayment, creating ways to make repayment easier, and student loans in general to be a burden to the government. Former Senator, Rick Santorum announced his belief that rather than promote higher education and utilization of student loan programs, the focus should be on promoting blue collar jobs that do not require a college education.
To read more on this story visit: http://www.nacba.org/News/NACBANews/tabid/87/articleType/ArticleView/articleId/277/Associated-Press-Explosion-in-Student-Loan-Debt-Reaching-Crisis-Proportions-But-Largely-Flying-Under-Radar.aspx
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. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. 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. at www.miamibankruptcy.com
Reports Show an Increase in Credit Card Debt for Americans in the Month of February
CreditKarma.com released data from the consumer credit climate report compiled of more than 442,102 consumers in February 2012. The results showed a slight increase in consumer credit spending since January 2012. CreditKarma.com reported that the average American consumer held more than $170,000 in debt, which was attributed to home mortgages and more than $46,000 in home equity loan debt. Another debt that Americans are struggling to reduce is their student loan debt, which averages around $28,000 per person.
Not only has credit card debt increased, consumer credit scores have decreased two points since January 2012. The average American consumer credit score is 659. Credit score averages tend to be higher in states like New Jersey and Massachusetts. Credit scores in states like Mississippi and Louisiana tend to be lower, and are attributed to the lower cost of living.
To read more on this story visit: http://www.marketwatch.com/story/credit-card-debt-remains-stable-according-to-creditkarmacom-2012-03-14.
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.
Student Loans go Unpaid as Younger Workers Face Difficult Conditions in the Labor Market
According to data from the Federal Reserve Bank of New York, 11.2% of student loans were more than 90 days past due and the rate was 
steadily rising. Only credit cards had a higher rate of delinquency at 12.2%. Younger workers have continued to face the most difficult conditions in the labor market. Workers between 20 and 24 years old have a 14.6% unemployment rate, compared to the national average of 9.1% recorded in July.
Student loan debt outpaced credit card debt for the first time last year and is likely to top a trillion dollars this year as more students go to college and a growing number borrow money to do so. According to reports, two-thirds of bachelor’s degree recipients graduated with debt in 2008, compared with less than half in 1993.
Education policy experts expect that the mounting debt may have extensive implications for the current student borrower. Individuals finishing or leaving school with a lot of debt, may find their choices to be different than the generation before them. Things like buying a home, starting a family, a business, and saving for their own children’s college education may have to be put on hold for those with insurmountable student loan debt.
Students who borrow to attend for-profit colleges are especially likely to default. They make up about 12% of those enrolled in higher education, but almost half of those defaulting on student loans. According to the Department of Education, about a quarter of students at for-profit institutions defaulted on their student loans within three years of starting to repay them.
To read more on this topic visit:
http://blogs.wsj.com/economics/2011/08/16/more-student-loans-are-past-due/?KEYWORDS=student+loans
http://www.nytimes.com/2011/04/12/education/12college.html?_r=1
If you have any questions on this topic or are in need of a financial fresh start, please contact our experienced team of bankruptcy attorneys at (305) 285-9100. 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.