Living with debt is a daily struggle, especially for those who feel as if the cycle of debt will never end. It does not take long to end up in a situation where debt is the most defining aspect of a person’s life. In fact, young adults in Connecticut are frequently starting their careers already saddled with more debt than they can realistically handle, although bankruptcy may help.
Student loan balances have skyrocketed over the past 30 years. Early in the 1990s, a college graduate might expect to leave school with around $10,000 of student loans. Many of today’s college graduates start off their adult lives owing $30,000. These adults are not making nearly enough to pay off those loans, either. College grads can expect about $50,000 for their post-school starting salaries, less than 1% more than in 2017.
Approximately 43 million Americans have student loan balances, and 70% of today’s college students graduate with that debt. These loans disproportionately affect younger adults — mostly women — many of whom are delaying significant milestones because of their loans. Borrowers report putting off marriage, buying homes and even having children because they can barely keep up with their loan payments. Most people consider college as the first step to creating a full and vibrant life, but student loans are preventing college grads in Connecticut from doing so.
Student loan forgiveness has been a popular topic among lawmakers, but as of yet there is no clear indication that it will happen anytime soon. Adults who are struggling to keep up with their loan payments or who are already delinquent do not have the time to wait and see what might happen. Instead, they can choose to pursue bankruptcy in order to discharge eligible debts. Getting rid of those other debts often makes it easier to pay off student loans.