Student Loans
Wednesday, April 13, 2011 at 02:34PM The New York Times reported today that student loan debts are likely to top one trillion dollars this year. That's right: OVER ONE TRILLION DOLLARS in student loan debt exists in our country. The article goes on to describe that parents will soon be paying their own student loans at the time that their kids are going to college and incurring student loans of their own.
Student loans can be particularly difficult to resolve in the context of bankruptcy. A part of me would say that student loans are the single most difficult debt class to resolve. Now, that is not to say that there are not ways to address the student loans in a bankruptcy context. In fact, I am currently watching the progress of several cases that could have a dramatic effect on how Chapter 13 cases are used to 'adjust' student loan balances.
If those cases are decided by the Courts in the way that they should then bankruptcy may wind up being the absolute best alternative for handling student loan debt. I will keep you posted.