Financial distress is something every generation has to deal with in one way or another. That being said, the burdens on young adults nowadays are rather unique, particularly with the continual increase in the cost of education and student loan debt. According to the Federal Reserve Bank of New York, student loan balances increased by roughly $100 billion between September 2013 and September 2014. The problem is bound to only get worse in the years to come.
As many of our readers know, carrying burdensome student loan debt is stressful. According to a recent study conducted at the University of South Carolina, those who have significant student loan debt are more likely to have mental health challenges, particularly depression. The reasons for this are rather obvious, though. The burden of any type of debt can take a toll on one’s overall health and well-being.
Student loan debt is particularly stressful for borrowers, in part due to the fact that it is nearly impossible to have it discharged in bankruptcy. Unlike most other forms of debt, student loan debt may not be discharged in bankruptcy unless the borrower can demonstrate that it would be an undue hardship to repay the loans. Undue hardship is extremely difficult to prove, and most borrowers are not able to meet that requirement. Those who live with severe disabilities or who have a drastically reduced ability to earn money may qualify.
Graduates who find themselves burdened with debt may not be able to discharge student loans, but may still benefit from a bankruptcy filing to discharge other forms of debt. The decision to file is not one that should ever be taken lightly, of course, as there are challenges that come with it. That being said, there are some situations where bankruptcy is the most sensible way to get one’s financial life back under control.
Those who are suffering with debt should get in contact with our firm to have their case evaluated for the best steps to take in their case. Whether that involves bankruptcy or some other form of debt relief, we’re here to help.
Source: CBS Atlanta, “Study: Student Loan Debt Linked To Poor Mental Health In Young Adults,” Feb. 3, 2015.