{"id":160,"date":"2018-03-02T06:00:55","date_gmt":"2018-03-02T14:00:55","guid":{"rendered":"http:\/\/www.theastuteadvisor.com\/?p=160"},"modified":"2018-03-02T06:00:55","modified_gmt":"2018-03-02T14:00:55","slug":"student-loan-debt","status":"publish","type":"post","link":"https:\/\/www.bridgeviewadvisors.com\/student-loan-debt\/","title":{"rendered":"Student Loan Debt – 5 Things You Need To Know"},"content":{"rendered":"
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Student Loan Debt – 5 Things You Need To Know<\/figcaption><\/figure>\n

Student loan debt is on the rise and the numbers are staggering. Total student debt is approximately $1.38 trillion and is second only to U.S. mortgage debt. If you’re like me, seeing these crazy dollar amounts can lead to information overload. Just trying to wrap my head around ONE TRILLION is a challenge.<\/p>\n

Rather than focusing on these headline grabbing numbers, it can be helpful to look at things on a more micro level.\u00a0 As you do, keep in mind these individual numbers are multiplied by millions of other individuals. This level of debt is not only a burden on students individually, but it is a burden on the economy as a whole.\u00a0
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Student loan debt is nearly impossible to discharge in bankruptcy.\u00a0<\/strong><\/h2>\n

It is critical to understand that bankruptcy laws have changed. If you find yourself in that unfortunate situation, it is likely that you’ll be stuck with your student loan debt. There is a misconception that you can include these debts in bankruptcy and it is very rare to be successful in having it discharged. And, considering student loan debt is usually the first or second largest source of consumer debt<\/a>, bankruptcy could end up being a moot point.<\/p>\n

According to an article in Market Watch<\/a>:<\/p>\n

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Despite rising student loan debt and the number of borrowers who are struggling, student loans are still notoriously hard to discharge in bankruptcy. In the 1970s, Congress passed a law banning student loan borrowers from erasing their debt in bankruptcy except for in cases of \u201cundue hardship.\u201d<\/em><\/p>\n<\/blockquote>\n

Recently, there have been indications that changes might be on the horizon which could make changes to this. In recent Congressional testimony, Federal Reserve Chairman Jerome Powell said “I’d be at a loss to explain why that should be the case,” and indicated it would be up to Congress to change the laws according to an article on CNBC<\/a>.<\/p>\n

[convertkit form=5108043]<\/p>\n

Student loan debt is on the rise.<\/h2>\n

A report<\/a> issued by The Institute for College Access & Success\u00a0(TICAS) states that in 2016 the average student loan debt was between $20,000 to $36,350 depending on your state.\u00a0 Increasing costs, fees, and living expenses are contributing to the rising debt levels.<\/p>\n

\"High<\/a>
High Student Loan Debt States<\/figcaption><\/figure>\n

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\"Low<\/a>
Low Student Loan Debt States<\/figcaption><\/figure>\n

Source: The Institute For College Access & Success – 12th Annual Student Debt And The Class of 2016<\/a><\/em><\/p>\n

It should be noted that these numbers can vary significantly depending your major and course of study as well as many other factors.<\/p>\n