Bankruptcy and Neglecting Student Loan Payments

I actually like the video at the bottom of this article on students, more then than the article itself.

Students just can’t afford to walk away from their student loans anymore. Read on…  

At one time students could declare bankruptcy and just walk away from their student loan.

So many students did this, that governments started taking action to prevent situations like this - by passing laws, and going after delinquent students who did not pay their loans or tried to claim bankruptcy.

Before you decide to claim bankruptcy, in fact well before you get to the stage were bankruptcy is a really a factor, sit down with your financial advisor or bank manager and discuss what you can do to solve some of the financial issues that are taking you in the direction of bankruptcy.

This is true at any age, but even more important for students since a bankruptcy claim can affect you for the major part of your early years in your career. Early in your career you need money for homes and cars and furniture, even to get married. Having a good credit rating can make a big difference.

If you think you may benefit from some counseling or assistance, most loan agencies that provide student loans have information on their web sites that you might find worth reading.

Subjects such as budgeting, scholarship applications, consolidating loans, deferred loans and low interest rate loans are some of that you might consider before declaring bankruptcy.

Consider that by consolidating all of your debt into one low interest rate loan, you might find that your monthly payments actually decrease giving you that breathing room you need to get by and avoid bankruptcy. Lowering your monthly payments and paying less interest will make it much easier to deal with your financial challenges.

Related Video – Neglecting Student Loans – Must Watch!