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Smaller student loan holders could need more help for debt relief

Under the impression that smaller loans are far easier to handle than larger ones? This is not an uncommon thought process, and on the surface, it might even appear to make sense. Some Washington consumers might specifically take out a smaller loan to handle a large expense like college with the idea in mind that it will be easier to pay back. In reality, those smaller loans can actually be more difficult for a number of reasons, and they can lead debtors to seek help with necessary debt relief.

Most students attending college need some sort of financial help to pay the enormous tuition costs and other fees. With only so many scholarships to go around, many students must use student loans in order to pay for their college education. While it likely comes as no surprise that students often struggle repaying these loans after graduation, who is struggling might come as more of a shock.

According to the Department of Education, the students who initially borrow the smallest loans struggle the most with repayment. This is believed to be caused in part by data suggesting that those who borrow more also tend to eventually earn more. Doctors and lawyers typically take on much more debt while earning their education, but theses professions also yield a higher income. Degrees that might cost less to earn do not always have the same outcome of such a reliable and steady source of income that can be used to repay loans.

Although student loans can only be discharged if certain qualifications are met, those in Washington who are no longer able to make their payments due to overwhelming financial stress can still benefit from debt relief. While there is no guarantee that bankruptcy can get rid of a student loan debt, alleviating the burden created by medical or credit card debt can create a more stable financial environment. In doing so, making student loan payments can become possible once again.

Source: cheatsheet.com, "Student Debt: Smaller Debts Mean Bigger Issues For Borrowers", Sam Becker, Sept. 21, 2015

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