Does student debt mean you are stuck in debt crisis?
Reports about the debilitating reality of student can be disheartening for the many men and women who have taken out loans to pay their ways through college. A recent CBS News report declares that the average student debt that people carry not only is a current, day-to-day stress, but it could even force workers to put off retirement until the age of 75.
Student debt has traditionally been seen as a great, equal opportunity option for those looking to fund an education that they otherwise can’t afford. That debt is worth it because one’s education will get them a job that can pay off that debt. Unfortunately, jobs are not so easily paying for the debt load that student debt has become. The American dream that hard work will create the life so many want is not so easily attainable.
Instead, people like father and teacher Jess Sanchez are working the jobs they want but paying nearly half of their income towards their student debt. That cost makes saving money for retirement too difficult. Or, what people can afford to save is too little in order to retire at the desired age.
A different reality that the CBS report doesn’t mention is the other debts that many Americans are paying month-to-month outside of student loan debt. It is valuable to discuss that reality for debt relief purposes. Say someone has student loan debt. Now add to that credit card debt, for example. A list of debt is a great stress. It can and does become unmanageable for many Americans.
Under bankruptcy law, student loan debt generally is not forgiven. That debt can become easier to bear, however, by addressing the debt relief options that are available. Filing for bankruptcy can provide credit card debt relief for those in certain situations, making it easier to balance other financial priorities in their lives, such as retirement.
A Florida bankruptcy lawyer can also talk to those struggling with debt specifically about retirement funds. Some consumers wrongly assume that bankruptcy is a worst-case scenario. But is it worse than losing their home? Before someone digs into their retirement savings to pay off any debts, they should talk to a lawyer experienced in bankruptcy law about whether it is the wisest option.
Source: CBS News, “Study: Student loans getting in the way of retirement,” Anthony Mason, Nov. 11, 2015