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Student loan debts are financially crippling

There are many types of debt that United States citizens suffer through. This debt can affect their standard of living in a number of ways, potentially putting their homes, cars and lifestyles at risk. Some people accrue debt from unforeseeable circumstances such as loss of job or sudden medical complications. The future generations of our country may look as though they might be being set up for failure before they even have a chance to find their footing.

A new study has concluded that there is a distinct difference between the net worth of college students with debt and those without. Since there are no debt relief options for student loans, they can cause incredible damage financially. When dealing with graduates less than 40 years old, the study showed that the median net worth of those without student debt is almost $65,000, more than seven times the $8,700 median net worth of those with student debt. 

Of course student loans are only one type of debt that people might accrue. Saddling graduates with student loan debts only adds to their future financial struggles as they begin to suffer from other debts like credit card or auto loans. The monetary issues only mount as the individuals begin to face mortgage payments and monthly bills, compounded even more if they decide to start a family. Fortunately, there are debt relief options for those Ohio students whose financial futures might look bleak.

While there is really no easy way to lower student loan debts, there are plenty of options to help people handle their other expenses. Bankruptcy filings can discharge certain types of debt completely, such as credit card debts and medical bills. Discharging your debts through bankruptcy can allow you to devote more of your expenses to paying off your student loan debt and get you back on strong financial footing faster.

Source: The Daily Caller, “Student Debt-Laden College Grads Under 40 Have $8,700 Median Net Worth,” Eric Owens, May 15, 2014

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