Senior Citizens Slammed by Student Loans

December 29, 2012

Most Americans associate student loans with students. Recent research by the Federal Reserve of New York, however, has revealed that student loans are wrecking havoc with not just former students, but with their parents, too.

 

For many families, college students simply don’t have the money or credit rating to fully fund their education. To supplement the student’s credit worthiness, parents will co-sign on the obligation, thus binding their future to their child’s post-graduate fortunes.

 

Other senior citizens take out education debt for themselves. Either looking to improve their professional prospects or simply to learn something new, these adults take on debt with an assumption – higher future earnings – that simply doesn’t materialize.

 

Whatever the reason for the senior citizen-held student debt, the bottom line according to the New York Fed is that senior citizens currently hold a staggering $36 billion in student debt. And it’s growing every year.

 

In general, student debt is non-dischargeable under the Bankruptcy Code. However, other forms of unsecured debt may be discharged, such as credit card debt, home equity lines, and other “second-position” credit products. By clearing these obligations off your family’s balance sheet, you may be in a better long-term position.

 

Want to know more about whether bankruptcy is right for you, your family, and your retirement plan? The conversation may be more fruitful than you might first imagine. To find out how the professionals at Fears Nachawati can help you, contact us today.

More Blog Posts

CONTACT US

Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with all your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears Nachawati.

Inquiry Type

  • General
  • Personal Injury
  • Immigration
  • Bankruptcy
  • Drug Litigation
  • Family Law

Locations

With offices in Texas, Florida and Colorado and attorneys licensed in Texas, Florida, Colorado, Arkansas and Oklahoma, Fears Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consulation

Live Chat (Online Now)