Student debt held by Texas residents and many millions of Americans in other states as well is often readily distinguished by financial commentators from other types of unsecured debt.
That means most centrally things like credit card debt and medical bills. Many media pundits are quick to note that those types of financial obligations, once reaching insuperable levels, can be discharged through a bankruptcy filing. The same is not generally true for persons focused on securing debt relief by ridding themselves of prohibitively high student loan obligations.
With limited exceptions, student debt is not dischargeable through bankruptcy. Business writers often note that this inability to discharge has a broad impact on American society, given that debt-laden former students cannot fully engage as consumers by buying homes, automobiles and other high-ticket items that fuel economic growth.
That does not mean, though, that persons with punishingly high levels of debt accrued for their schooling cannot seek to responsibly deal with such a challenge. Seeking debt relief is certainly not an option that is foreclosed to former students struggling with onerous payment duties.
For starters, contacts with lenders can sometimes yield positive results. Adjustments are frequently made to payment schedules and monthly payment amounts, and interest payments can sometimes be adjusted, too, through automatic online payments.
A fundamental point to be noted with student debt is that it does not often exist in a vacuum. That is, ex-students paying back loans sometimes — and specifically because of such loan exactions — have other challenging duties that do relate to things like credit card payments and dealing with medical bills.
As stated, many unsecured sources of debt can be dealt with through bankruptcy, and a proven debt relief attorney can provide strong assistance to a client by helping to identify them and work to make the overall debt level manageable.
That can mean that, even with retention of a student loan obligation, that payment duty can sometimes be made easier.
Source: The New York Times, “How student debt may be stunting the economy,” Neil Irwin, May 14, 2014