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Debt relief can allow you to focus on student loans

A growing problem in our country concerns current and future American generations. Some Ohio residents may personally be feeling the strain of the countrywide rise in student loan debts, which now total approximately $1 trillion spread amongst almost 37 million American citizens. This is particularly problematic because there are very few debt relief options available to help.

Figures surrounding student debt are staggering: Approximately 12 million American students borrow to pay for their education. They make up more than half of the 20 million people who attend college yearly. Most of these students accumulate tens of thousands of dollars’ worth of debt, with some even being saddled with six-figure debt.

Massive debts widen the wealth disparity in the United States, as students who graduate debt-free have a head start on investments such as retirement plans, stocks or home equity. To put this into perspective, an Ohio State University student who got a “full ride” estimated that he was saved from about $100,000 in debt. Avoiding debt allowed him to put away a small percentage of his salary for retirement, while many of his co-workers and peers were forced to pay that amount toward student loan debt. This means that by the time a person not burdened by debt retires, he will have significantly more money to live on than his peers who earned the same salaries during their careers.

Unfortunately for the millions of Americans who face crushing debt from student loans, there are few debt relief options that can directly assist with the problem. However, this is not to say that the situation is hopeless for all. There are plenty of debt relief options that Americans can take advantage of that will allow them to focus as much of their earnings as possible into paying back student loan debt, thus paying off the debt faster.

Chapter 7 and Chapter 13 bankruptcy can alleviate many financial burdens, such as credit card debts or medical bills. Individuals who are struggling to make ends meet with all of their bills can file for bankruptcy to eliminate some of their debt and allow them to put more money toward paying off student loans.

Source: Reno Gazette-Journals, “$1T student loan debt widens U.S. wealth gap,” Carolyn Thompson, March 30, 2014

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