The New York Times recently reported that student loan debt has exceeded $1 trillion. Student debt and the lack of job prospects cause many graduates to delay making major purchases, such as homes and cars. Experts say this decrease in consumer spending acts as a drag on the economy.

With the rising cost of education, The Pew Research Institute estimates that 40% of households headed by adults 35 or younger have student debt. It's not surprising that economists say young adults with student loan debt have more difficulty qualifying for mortgages and saving for down payments.

Student borrowers will have an even tougher time tackling their debt with interest rates scheduled to double on July 1, from 3.4 to 6.8%. Some members of Congress are working to prevent this increase. Senator Elizabeth Warren, of Massachusetts, has proposed a bill that would allow students to borrow at an interest rate of 0.75%. This is the same rate offered by the government to big banks.

If you are struggling with student loans and credit card debt, a bankruptcy attorney may be able to help you get a handle on your finances. There are special rules that apply to the treatment of student loans in bankruptcy, so it's important to speak with an experienced attorney. To schedule a consultation to find out how we can help, please call 619-295-3322.