About 750,000 people defaulted on student loans in 2011, according to a report by CNN. With over 4.1 million borrowers, that represents about 9.1%, up from about 8.8% in 2010. To default in this case means to neglect to make payments for 270 consecutive days, which is about nine months. Interestingly, the default rate among students who attended for-profit colleges was much higher than at non-profits. Private non-profit colleges also had lower default rates than public colleges. One of the dangers of defaulting on a student loan is that student loans are not dischargeable in bankruptcy proceedings. This means that people who default on student loans, and then file for bankruptcy, are still stuck with those defaulted student loans, which continue to accumulate fees and ruin credit.
Do you feel like you are drowning in student loans and other debt? Contact an experienced Dripping Springs bankruptcy attorney as soon as possible to discuss all of your options.
If you are struggling to pay your bills, and feel like you have to decide which bills to pay and which bills to ignore, it can be easy to just ignore student loans; there is nothing for the bank to repossess, it may seem like there is nothing to lose. Unfortunately, the repercussions to defaulting on a student loan can be severe. Aside from that, there are options to avoid default with student loans that may not exist with other types of debt. And it is important to keep in mind that if you are considering bankruptcy, it will not make your student loans go away, defaulted or otherwise.
If you are struggling to pay the bills each month, speak with a dedicated, knowledgeable Dripping Springs bankruptcy attorney as soon as possible to discuss your options. Brian Daniel has helped countless people to understand all of their financial options, and to decide whether bankruptcy is the “right” one, or whether there is another choice that will work better. As a Dripping Springs bankruptcy attorney, Brian understands that there is no one correct answer for everyone. He will look at your specific situation, make sure that you understand all of the options available to you, so that you can make an informed decision. For more information and a FREE CONSULTATION, contact Brian today at (512)615-3569.