Managing the Situation of Student Loan Insolvency
"As governments have begun to tighten their grip on students, it has become increasingly apparent that some of them will be unable to repay the student loans they took out to finance their education. One questions whether this is the result of an accident or a deliberate containment policy. In spite of this, there are instances of student loan bankruptcy. One could argue that this is not technically a loan, but rather an arrangement in which the government attempts to abdicate some of its responsibilities in favor of a system in which students are responsible for their own education.Prior to 2004, students could include student loan debt in their bankruptcy petitions. This created a loophole for those who opposed the system regardless. They only needed to file for bankruptcy and include the substantial student loan in their portfolio. However, the government determined that they would be unable to include the student loan in their portfolio. The pupil who expects to repay their loan in this manner will be severely dissatisfied. The current system allows them to declare bankruptcy on other debts, but the student loan remains on file and must be repaid. However, there are some organizations that may be able to assist students in dire straits so that they do not endure a terrible fate during the bankruptcy proceedings.Students leaving college with a mountain of debt and no income to pay it is extremely disheartening. Thus, instead of making a down payment on their first home, they are too occupied navigating the complexities of their student loan. Students from disadvantaged backgrounds have been dissuaded from pursuing higher education due to the frequency of this enforcement action and the substantial costs they incur during their college years. It appears that the government is determined to pursue this policy regardless of the repercussions for the involved youth. Student loan bankruptcy will continue to rise as we speak.As a result of the closure of the loophole, the income levels of the students will decline even as they obtain their first employment. This will increase the likelihood that they will return to welfare or apply for bankruptcy through an alternative route. As for the pupils, they must be accountable for their individual finances. Students are frequently involved in the purchase of items that they obviously cannot afford. They apply for credit cards without any intention of ever repaying them. As a result, their finances remain in purgatory indefinitely, and they fail to make the type of investment that would ultimately guarantee them a comfortable retirement.
" - https://www.affordablecebu.com/
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"Managing the Situation of Student Loan Insolvency"
was written by Mary
under the Finance / Wealth
category. It has been read 100
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comments. The article was created on 03 June 2023
and updated on 03 June 2023