People are going crazy right now over the economy and how they (and their families) will continue to pay the bills next month or the month after. Some people are looking at their 401k accounts and literally crying due to the literal lack of retirement funding available for them. For some folks, the way out is to declare bankruptcy. Well, as a sort of student loan guru I just wanted to remind the big student loan borrowers out there that student loans are not eligible to be wiped away in bankruptcy court.
One of my new favorite places to go to read about events in the student loan industry is Student Loan Stories. This is a great blog that covers student loans from all angles and was good enough to post the story linked above regarding how student loans are not eligible for bankruptcy. As someone who still owes six figures in student loan debt, trust me when I say that I knew about this years ago! But this is the type of information that isn’t shared nearly enough with college graduates in terms simple enough to understand. And we all know the garbage that has gone on with the student loan companies and certain colleges being offered kickbacks to recommend one company’s consolidation services over the others.
Disgusting.
Anyway, just putting out the grim reminder that you can’t put your student loans into bankruptcy. Sorry!
This is definitely some crucial information for a lot of college kids. It’s a shame that this isn’t more publicized, especially with the potential implications. I’m glad I know about this know and I’ll be sure to spread the word!
It’s not publicized for a few interrelated reasons beginning with the pathetic voting habits of young Americans. They simply don’t vote in large enough numbers to make a difference. Politicians see that and realize that they can’t rely on the youth vote so they don’t talk to youth issues. This then spirals into less oversight of the student loan industry and ultimately leads to the scandals that we saw last year.
In the end, you get an industry that flies under the radar and is not subject to the same rules and regulations of other financial industries. Sucks.