A study released by the group shows that 81 percent of people who answered a survey claim that people with debt from student loans have gone up over the previous couple of years. Of the people who responded to the survey, 95 percent of them say they cannot remove themselves from the part of the debt using bankruptcy because they would not be able to prove undue hardship.
It has been said recently that thousands of graduates or soon-to-graduate students could find themselves in personal bankruptcy because of their student loan debt. This warning was issued by a group operating across the country.
In has been reported that over $1 trillion is owed by Americans when it comes to student loans. The number was $71 billion just 15 years ago, which equates to 1/14 of today’s number. The student loan debt is higher than the value of money Americans owe to credit companies, which is reported to be at $798 billion.
Congress is being urged by the group to change laws for bankruptcy so people who owe student loans will be able to pay back the debt during a longer timeframe or to have some of the debt removed. A bill has been created by a House member from Tennessee that would the recommendations from the group into law, should Congress approve them.
Experts have said that despite students receiving grant money and scholarships, the majority of students will still graduate with debt. Aid dollars have also been sent to merit programs that recruit the best students instead of going to low-income family students. In an ironic twist, the majority of those top flight students come from families with higher incomes.
In order to attend a public university for two years in 2011-2012, the cost would come to $15,286 when you include tuition, books, living costs, fees and other random expenses. If you attended a four-year school in the state in which you live, tuition could hit $42,224.