Chicago Bankruptcy Attorney Evaluates Options for Student Loan Debt

Student loan debt was been soaring for the last decade and a half, and many economic experts believe it could hinder a recovering economy. Student loan debt has increased by almost 500 percent since 1999, and in 2010 student loan debt in the United States surpassed credit card debt for the first time. Some analysts predict the total student loan debt in America to be in excess of $1 trillion.

Student loan debt is not dischargeable in bankruptcy unless the borrower can prove extreme hardship endured by the borrower. Exceptions are rare. Illinois Senator Dick Durbin has proposed some solutions to the possible pending crisis, including bankruptcy protection for borrowers of private student loans. U.S. Representative Hansen Clarke (D-MI) introduced the Student Loan Forgiveness Act of 2012, which would allow borrowers to receive partial loan forgiveness. Under this proposed act, debtors can pay 10 percent of their income to their loans for 10 years; after that, the rest of the debt can be forgiven. Even more forgiveness incentives are available to graduates who choose a career in public services, such as firefighters or teachers.

These are some interesting options for the looming student loan debt crisis. This is a problem that must be addressed, but borrowers should not count on being able to discharge student loan debt in bankruptcy. If you are struggling with debt you may want to consider bankruptcy to discharge other debts so you are able to pay back your student loans. Visit our website for more bankruptcy information.

Benjamin Brand Services-Chicago bankruptcy lawyer.

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  • You can meet with an experienced law Partner in the Firm not some associate.
  • We concentrate in foreclosure defense and bankruptcy so we have more options to offer you then other attorneys
  • We also represent individuals in Chapter 11's that offer better loan workout and restructuring options then Chapter 13 and most bankruptcy lawyers do not know how to do it.
  • We offer a free no obligation consultation where we will discuss your option or options, tell you the pros and cons of each one, the fees and costs and help you make an informed decision. There can be more then one solution!
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