It is not secret that the cost of college is far outside of the reach of an average Connecticut student. Even with scholarships and grants, few can afford to fork out fistfuls of cash for their classes. With ever-growing class loads, working more than part time during college years is also difficult if not impossible for some. These and other factors have culminated into a growing crisis for young adults, which personal bankruptcy could be one option for addressing.
Debts levels for young adults between the ages of 19 and 29 recently topped out at $1 trillion. This is the highest level of debt this age group has shouldered since back in 2007 when America was in the throes of the Great Recession. The burden of this debt shows, too. According to a university study, debt impacts how these young adults view their own spending habits. Adults under the age of 35 have drastically reduced their spending habits compared with past generations.
The $1 trillion in debt is not because of extraneous or frivolous spending. Student loans make up the bulk of that figure, meaning that this age group largely went into debt by simply trying to get an education. Many are putting off important life steps, such as buying a home, because of their student loan debt. Mortgage debt makes up the majority of consumer debt in America, but for young adults it is a much smaller representation of overall debt.
Falling behind on student loans can be easy, and once borrowers become delinquent bigger issues can arise. Soon they may start receiving harassing phone calls from creditors or see their credit scores tank. Personal bankruptcy typically cannot discharge student loans, but it can handle other debts, such as credit cards. When young adults in Connecticut use bankruptcy to discharge these other debts, they often feel better equipped to handle their student loan repayments.