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Student loans total $1.3 trillion, signals need for debt relief

Most Washington students do not debate the lifelong value of a college education and corresponding degree, but a great number would likely express significant disappointment over the growing cost of attending an institution of higher learning. Student loans are at an all-time high, putting many young Americans in compromised and unstable financial positions the moment they leave college. Because of this, more and more young people tend to turn towards bankruptcy as a viable option for debt relief.

A United States' Senator recently met with university students to tackle the difficult subject. She pointed out that many jobs now require multiple degrees and that the job market is more competitive than ever. In one state, a single degree nets the average student approximately $30,000 worth of student loans that must be paid back after graduation. Although the job market has improved since the recession, graduates still struggle to find steady employment that will provide for both their daily needs as well as their monthly student loan bills.

Currently, student loans account for the second most common form of household debt. Nationally, student loans are valued at $1.3 trillion, a staggering number for something that has become virtually necessary in order to achieve even entry-level jobs. Although many people have attempted to affect change over the years and improve the current system, a great number of obstacles still stand in the way of true student loan reform.

While it can be difficult to discharge student loans through bankruptcy, it is certainly not impossible. Even in situations when a Washington consumer's student loans cannot be entirely discharged, bankruptcy can still be effective at achieving debt relief from other sources. Discharging other debt is an effective way of freeing up finances to better handle the remaining student loans.

Source: mlive.com, "'Staggering' student loan debt targeted by U.S. senator from Michigan", Chelsea Purgahn, Feb. 17, 2016

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