At McElroy & Associates, We Understand That Bad Things Can Happen To Good People

Get A Fresh Start Through Bankruptcy

What to do about student loan debt

On Behalf of | Oct 1, 2023 | Consumer bankruptcy |

An increasingly common scenario in the United States is people older than 50 still owing on their student loan balances. This has shown itself to be a major issue not just on the individual level, but for the nation and society. It’s become clearer than ever that it’s vital to find a way to forgive these loans so that these myriad borrowers can return to financial stability and move on with a clean slate. If you’re dealing with student loan debt in Tennessee, this information may be of some help to you.

Why are so many people mired in student loan debt?

The Biden Administration attempted to forgive $430 billion of student loans, a move which could have helped up to 43 million people who borrowed money in order to obtain higher education. But the Supreme Court was clear in its ruling that it’s not about to let that happen anytime soon.

8.8 million individuals over the age of 50 still owe money on their student loans, and the total amount of debt is approximately $380 billion. These statistics come from policy researchers from the organization New America. The group also found that the number of individuals who are 60 and up and still in student loan debt increased by a factor of six from 2004 to 2023.

Tuition prices and a recession

The widespread nature of this bankruptcy problem is, in no small part, thanks to several economic factors that occurred on the national level and shook the finances of myriad collegiates and college graduates during that time. Although these people may have held graduate degrees, it was hard for them to argue with the Great Recession of 2008.

On top of this, college grew more expensive than ever. Most people paid for it through federal student loans, which they had no guarantee of being able to pay back.