Paying off student debt might be easier with bankruptcy

On Behalf of | Nov 5, 2019 | Bankruptcy

Getting an education is very important for young adults in Connecticut, but unfortunately that education usually comes with a very large price tag. However, while many college grads leave school with a significant chunk of debt, some have much more than others. Since student loans usually cannot be discharged through bankruptcy, some people might not consider just how helpful bankruptcy can be.

While almost all jobs are important regardless of pay or purpose, there are some positions that benefit society and must be filled. These include jobs in both the social assistance and private health care industries. Even though these are very helpful and needed industries, adults who work in them have the largest average monthly student loan payments. On average, these college grads pay $685 per month. Those who work in education have the second highest average at $563.

This information is based off 30,000 responses to the Fidelity Student Debt Tool. Those responses also showed that more millennials have student loans than other generations, they do not carry the highest balances. Gen Xers and baby boomers have much higher balances than their younger counterparts, contributing significantly to the nationwide $1.5 trillion student loan debts.

Student loan payments can easily eat up a significant portion of people’s paychecks, leaving these individuals without any options for paying their other bills or even meeting daily needs. This can be a very stressful situation. Most people in Connecticut truly just want to repay their loans so they can go on with their lives but struggle to do so. While bankruptcy might not handle student loan debt, it can still discharge things like credit card balances and other debts. This can make it easier to handle monthly student loan payments without sacrificing personal needs.