Student loan delinquencies on the rise

A recent economic analysis revealed that student loan delinquencies have dramatically increased from 2012 to 2013.

2013-04-13

April 13, 2013 (Press-News.org) Financing higher education with student loans seems like a wise investment. Getting more education is supposed to make a person's overall financial situation improve because the job prospects are broader for those with post-secondary education than for those without it. However, many graduates know the difficulty of paying back student loans after graduation. A recent economic analysis revealed that student loan delinquencies have dramatically increased from 2012 to 2013.

Troubles repaying student loans

Consumer credit reporting agency Equifax issues a monthly National Consumer Trends Report detailing the nations' consumers' financial situation. According to the February 2013 report, severely delinquent or charged-off student loans increased by over 36 percent from February 2012. The amount of unpaid student loan debt for the first two months of 2013 reached $3 billion. The report also showed that the total amount of student loan debt was up by about 14 percent from the $ 746.3 billion of February 2012 to reach $ 852.7 billion in February 2013.

Financial experts attribute the sharp rise in student loan delinquencies to the underperforming economy. People are finding it difficult to find employment after they graduate, making it hard to repay loans. Additionally, the cost of tuition is outpacing inflation. People need to borrow more now to finance their educations than in the past -- and the monthly payments after graduation can be steep.

Chapter 13 bankruptcy may help

Chapter 13 bankruptcy may be an option for those who are struggling to pay student loan debt. In general, student loan debts are not dischargeable in bankruptcy. A person must show that repaying his or her student loans would create an "undue hardship" for the borrower before the court will discharge the loans, and this standard is very difficult to meet.

However, when a person files Chapter 13 bankruptcy, the court issues an automatic stay on most collection actions -- including student loans. People will not be subject to garnishment, property seizure or collection lawsuits while the stay is in effect. The stay does not eliminate the debt, but it does give people time to reorganize their finances under bankruptcy.

People need to be aware that they will still need to repay their student loan debts after emerging from bankruptcy and that interest will continue to accrue on unpaid loans. Chapter 13 can eliminate people's other debts, though, and leave them in a stronger financial position so they can more easily make their student loan payments.

Talk to an attorney

Those who are overwhelmed with student loan debt may feel like they have no options. However, Chapter 13 bankruptcy may be a way to help regain solid financial footing. If you are struggling with debt, speak with an experienced debt relief attorney who can discuss your situation with you and advise you of all of your options.

Article provided by Prescott & Pearson, P.A.
Visit us at www.prescottpearson.com

ELSE PRESS RELEASES FROM THIS DATE:

An overview of employment law bills introduced in California legislature

2013-04-13

With the February deadline to introduce new bills in the California legislature passed, it is a good time for California workers to begin thinking about potential changes to the law that could affect them in the coming year and beyond. If they become law, there are several bills that will have an important impact on employment law. Wage issues, employee privacy online and flexible schedules key in proposals Minimum wage issues have been highlighted across the nation recently, and California is no exception. Under AB 10, the California minimum wage would increase to ...

Deadly Irving crash highlights risks of bus travel and other mass transit

2013-04-13

A recent single-vehicle bus accident on the President George Bush highway in Irving, Texas, has already claimed the lives of two bus passengers and left nearly 20 more fighting to survive in area hospitals. Witnesses say that the bus was heading down the roadway as usual when it began to weave, veered sharply off course, struck a roadway crash barrel (a form of accident "cushioning" put in place by the Texas Department of Transportation to help deflect the forces acting in traffic accidents), slid into the grass median and came to rest on its side. Since the ...

Marriage ending later in life? Get tips for going through "gray divorce"

2013-04-13

A recent study conducted by the National Center for Family & Marriage Research found that among individuals who got divorced in 2009, one in four was over the age of 50. This rate has more than doubled since 1990, when it was one in ten, and with the U.S. population aging, the trend is not expected to change anytime soon. Getting divorced is never easy, and if you are over the age of 50, divorce can come with some special challenges. Yet, with an experienced family law attorney by your side and a little knowhow under your belt, you can make the process as painless ...

Exercise care when selecting a nursing home for your loved one

2013-04-13

When we have a family member that needs to go into a nursing home, we will spend a lot of time studying the residences to determine which facility will offer the best care. We may take tours and speak with staff to learn more about the attention that our loved ones will receive. We have all heard stories about nursing home abuse that can sometimes occur at these facilities. Even if we carefully examine each location, we still may not be able to observe any mistreatment that may be happening. It is important to be aware of some of the signs of abuse that may be present. Some ...

Oregon family law: when is a prenuptial agreement a good idea?

2013-04-13

Many modern couples are getting savvier about their relationships and finances. While it may not seem particularly romantic, prospective spouses often find it advantageous to come to an understanding before marriage about financial goals individually and as a couple, including what should happen to wealth, property and debts should the marriage end in separation, divorce or death. A binding solution When an understanding is reached, the unique desires of the parties can be made legally binding by entering into a valid premarital, or prenuptial, agreement. A prenuptial ...

An Open Letter to President Obama and His Education and Brain Initiative Team. Brain Education is Critically Urgent and Absolutely Essential; it is an Emergency That Requires Immediate Action

2013-04-13

Dear President Obama: It is about time that our education experts realize why the most important human factor is the mind factor and that we now have enough knowledge of what the mind is. Did you know that there is no topic mind in High School psychology text books? The mind is the pure self, the 'I' of each and every human being. The face of the mind is what each person takes his own self to be. The mind is the self image. By improving the self image one improves the mind. By making the self image pure we make the mind pure. A pure mind/self-image is projected by the ...

Enjoy Nicaragua's Premium Coffee at the SCAA Event

2013-04-13

Nicaragua is currently present at the 25th Edition of the Special Coffee Association of America (SCAA) event, the largest coffee trade association in the world, held in the Boston Convention Center, Massachusetts from April 11th to the 14th. The highlight of the country's participation is its unique booth (#271), whose theme is "Sustainable Coffees of Nicaragua" and where participants are able to taste Nicaraguan premium coffee, prepared on the spot by skillful baristas. The Nicaraguan public-private delegation attending the event includes representatives ...

Sacramento Singer, Multi-Instrumentalist & Producer Kally O'Mally Releases New CD, Easy Money

2013-04-13

Thirteen tracks fill this expertly crafted journey. Each track is a unique delve into the classic storytelling and musical artistry that her listeners have come to expect. Few artists can deliver this without gimmicks. Recorded from March 2012 to February 2013, at EME Studios in Sacramento, CA, O'Mally has produced a great sounding CD. The title track, Easy Money is a fun, vibrant track that draws the listener in with bright horns, strong harmonies, top notch mandolin playing and an instantly recognizable intro. You'll find yourself in the El Camino on the way to Vegas ...

Security Solutions International (SSI tm) is Proud to Announce the Best Lineup of Speakers for the 8th Annual Homeland Security Professionals Conference

2013-04-13

Florida's must-attend Homeland Security conference, now in it's 8th year, promises to be the most important conference since its founding bringing together up to 400 Intelligence, Law Enforcement, Fire, Emergency medicine and Emergency medical personnel as well as military in three days of intense information exchange. "We are proud of the speaker line-up and the quality of information that will get out to this year's participants," states Sol Bradman CEO of SSI. It was a sell-out last year with people coming from all over Florida and from many other States ...

Polaris Launches FT 8012-the World's First Design Center for Financial Technology...Michael Harte, Group Executive, Enterprise Services & CIO, Commonwealth Bank of Australia, Inaugurates the Cente

2013-04-13

Polaris Financial Technology Ltd, a leader in products, solutions and services that enable unprecedented operational productivity for the global Financial Services industry, launched its 8012 FT Design Center - the world's first Center dedicated to Financial Technology. The Center was inaugurated by Michael Harte, Group Executive, Enterprise Services and Chief Information Officer, Commonwealth Bank of Australia, in Chennai recently. He also delivered the first FT Thought Leadership series lecture as part of the inaugural program. The event was attended by banking and ...

Student loan delinquencies on the rise

ELSE PRESS RELEASES FROM THIS DATE:

LAST 30 PRESS RELEASES: