Student Loan Interest Increases

I will blog often about student loan debt. Student loans are just a bill you must pay. Most people have education debt in some form or another. Federal and private student loans are not typically handled by a bankruptcy filing. However, other debts like financed cars, credit cards can hinder student loans from being paid.

Student loans are the next housing bubble. Most families simply cannot afford to send children to college without financial help. Other than working with the financer directly (there are some programs available) there is not a 3^rd party program to consolidate loans to an affordable payment. Simply, you must pay the loans.

On July 1^st, the interest rates on federal student loans will increase. Stafford loans for undergrads will rise from 3.86% to 4.66% and PLUS loans will increase from 6.41% to 7.21%. If you have a large balance in student loans and other debt, the increased payment could significantly affect your budget.

Bankruptcy will not help eliminate your student loans. But, you could eliminate the rest of your debt to make the loans affordable. When there is substantial other debt (i.e. credit cards, payday loans, etc), something has to give. Whatever is not paid, can go into collections and ultimately into a lawsuit.

Take the long weekend and make a budget. You can use a Geraci Law version by clicking here. If you have more going out then coming in, give us a call to see if bankruptcy can help!