Do student loan borrowers need debt relief?

On Behalf of | Jan 30, 2019 | Debt Relief

Debt involves so much more than simply owing money. For many people in Connecticut, debt is a source of frequent worry and an obstacle that prevents them from moving forward in life. From enjoying little things like dinner out with friends to making big life steps such as buying a home, sometimes it simply gets to be too much. Securing the right kind of debt relief can help some of these individuals not just get a better grip on their finances, but also better enjoy their lives.

With 44 million people currently owing a collective $1.5 trillion in student loans, the problem has been labeled a crisis. Student loans are the second biggest type of consumer debt, coming in behind mortgages but ahead of auto loans and credit card balances. The average 2017 college student graduated $40,000 in debt, and experts predict that 40 percent of borrowers will default on their loans by 2023.

Aside from the obvious issues that can arise when trying to repay such a large sum, massive student loan debts also pose other issues. In 2014, 45 percent of people between the ages of 24 and 32 owned a home. Now, only 36 percent of people in this age group are homeowners. The drop in homeownership rates is believed to be at least partly caused by outstanding student loan debt, which doubled over this same period of time.

Whether a person is struggling to repay their debt, cannot fully participate in adult life or a combination of both, there are options for debt relief. For the average person in Connecticut, this might mean considering bankruptcy. Although the idea of filing for bankruptcy can be overwhelming at first, most people are pleased to discover that the process can help them reclaim control over their finances.