Even as student debts mount, graduates can’t seek bankruptcy
Many students entering college in Florida and other states around the country do so with the understanding that they will fund their education with loans. After all, the general consensus is that the investment is worth it since a college degree is necessary to improve one’s employment prospects in the future. As a result, new evidence suggests that university graduates are facing more student loan debt than ever before.
The Institution for College Access & Success (TICAS) recently reported that public colleges around the country have been forced to raise tuition costs in response to state budget cuts. Furthermore, countless families have taken a hit to their personal incomes and resources. These factors, and others, may be coming into play as college students accept more and more debt in the form of private and federal loans to cover their education.
In their annual report on student debt, TICAS noted that many for-profit colleges did not participate in their study because they refused to provide information regarding the amount of debt carried by their graduates. As a result, the survey used information provided by 1,005 primarily private and public nonprofit universities.
One fact to keep in mind when considering the amount of student loan debt incurred by recent graduates is that it cannot be corrected through Chapter 7 bankruptcy.
While TICAS concedes that its findings may be an underestimation, the group claims that a large percentage of 2012 college graduates owe approximately $29,000 in student loans. The number of college grads leaving school with student loan debt is on the rise as well. Apparently, college graduates in Delaware carry the most debt: approximately $33,000 each.
Source: Huffington Post, “Average Student Debt Climbs To $29,400, Up 63 Percent In Less Than A Decade: Study,” Tyler Kingkade, Dec. 4, 2013