The financial institution LendEDU published a report earlier this month that sheds additional light on what may be motivating many individuals to file for Chapter 7 bankruptcy nowadays. They found that student loans may be one such factor.
Data published by the personal finance site Student Loan Hero earlier this year captures how Americans currently owe lenders as much as $1.5 trillion in student loan debt. Their data also shows the average graduate in 2018 carried as much as $29,800 each in debt for their studies.
LendEDU researchers uncovered how 32% of those who have recently filed for bankruptcy have unpaid student loans. They also found that 49% of the outstanding debts that those individuals have are exclusively made up of these.
They found that many millennials are struggling financially because living costs continue to rise and they're still trying to recover from the recession. Since filing for bankruptcy can't eliminate their student loans, more and more are filing for it to ease the burden that the other debts they have.
Many people get their unsecured credit card balances discharged simply to be able to pay their student loan debt. Even still, this leaves them drowning in debt. One researcher pointed out that it now takes millennials working 4,459 hours at minimum wage to cover the cost of a four-year degree. It used to only take baby boomers 306 hours to do the same.
Consumer News and Business Channel (CNBC) researchers have recently found that even after bankruptcy, many individuals who are encumbered in student loan debt leave the country. They do so to avoid having to pay their student loan debt. Many have found a comfortable lifestyle elsewhere that they simply can't afford in the United States anymore.
Student loans, especially if both you and your spouse have them, can definitely place a burden on your finances. While eliminating your debt through bankruptcy may be impossible, there may be other options in New York to help you deal with that. A Chapter 7 attorney in Long Island can discuss what can and cannot be accomplished by filing for bankruptcy with you.