Today, 71% of students graduating from 4 year colleges have student loan debt. According to The Project on Student Debt, the average student loan debt for a college graduate is $29,400. However, student loan debt is not only a problem for recent graduates.
In recent years, there has been a sharp increase in the number of older Americans who have student loan debt from financing their own education or the education of their children. As of 2013, people over the age of 65 had $18.2 billion in outstanding student loan debt.
If you have student loans and are approaching retirement, it is important to know that your social security benefits can be garnished by 15% for defaulted federal loans. In 2013, more than 155,000 social security recipients had their benefits garnished due to student loan debt, as discussed by US News & World Report.
If you have federal student loans in default, there are programs available to rehabilitate your loans, get them out of default, and into an affordable repayment plan. Our office can help you figure out the best way to tackle your student loan debt and protect your future social security benefits. Contact us to schedule a no-cost consultation to find out how we can assist you.
The common misperception that once a student takes out a student loan, they are obligated to pay it all back no matter what the circumstances are. This is not completely true. While a lot student loan debt may not be forgiven through bankruptcy, attorney Chris Bush at DebtDoc may have many ideas to help you reduce or get rid of your debt.
However, it is still important to note that the process of relieving student loan debt is different from the process of discharging other types of debt and will require a very detailed analysis of the many types of student loans as well as an examination of the history of the loans.