Unfortunately, it is becoming more and more common for students to try to wipe the slate clean by discharging student loans under a bankruptcy proceeding. The global economic downturn as well as rising unemployment, have left many students with overwhelming debt and no decent job to start making student loan payments.
Tough Debt to Discharge
Because of the basic necessity of an education and its impact on life time earnings, it is usually very hard to get a bankruptcy judge to agree to wipe the debt off your record. An education is a guarantee of sorts that you will be making an above average income in the future. And the loan was the wherewithal to offer you that chance for advancement.
cash loans online, Cash Loans Online, cash payday loan,
Broken Promises
Economically difficult times have more or less abrogated that promise. You will need to convince a court that making payments on your loan will severely affect your ability to keep a roof over your head and food in the pantry. You will also need to show that your situation will be more or less permanent. Many studies have shown that the value of a college education is diminishing.
Face the Facts
You may as well resign yourself to the fact that you are stuck with your student loan. You may not be able to make payments, but it will probably sit there, collecting interest, waiting for you to finally be able to start making payments once again. Even if you do manage to wiggle out of the loan, it will be a very bad mark on your credit history.
Bankruptcy Is a Tough Measure
Whether or not you are a student, bankruptcy is a difficult choice to make. While it may offer relief in extreme circumstances, it will always be on your record. If may drop off your records in anywhere from 7-10 years, but the space will always be there. Future loans will be harder to come by and you may never be able to get the rates and terms enjoyed by folks who have never declared bankruptcy.
Some Student Loans Are Different
A number of other reasons exist that make student loans somewhat different than usual loans. Some loans have depended on public or taxpayer funds for financing and there is something untoward about sticking other tax payers with your bills. Also, many student loans are offered at interest rates well below the usual market rates and this is indicative that your were getting a break in the first place.
Some Student Loans Show Extravagance
On the other hand, some students have taken out student loans from commercial financial institutions. The amounts owed on these loans are often marked by extravagance or greed. Often, this has been encouraged by the lenders themselves. While applying for these loans, lenders often present a list of items that a student should consider before finally settling on a good loan amount. These lists can include things as outlandish as spring-break trips, expensive laptops or other electronic equipment, even nights on the town. All of these are pushed as valuable parts of the university or college experience. It is hard to be sympathetic to students who have been swayed by such nonsensical items being passed off as educational necessities.
Need Quick Cash? Bad Credit And No Credit Ok. Flexible Payment And Super Low Fees. Get Cash Fast Today!
Rating of cash loans for cars
Get Online Application at online payday loans.
0 comments:
Post a Comment