We recently wrote about the debt relief problems faced by recent college graduates burdened with college loan debt. An unlikely result of New Jersey students holding a share of more than $1 trillion in loans to finance their college educations is hurting the national economy. It has also contributed to college graduates being afraid to acquire additional debt in the form of auto loans and credit card debt.
One report puts the total amount of student loan debt in New Jersey alone at almost $31 billion. College graduates find themselves in the unexpected position of being deeply in debt in a job market that offers them low-paying jobs that barely allow for the repayment of their college debt.
College graduates who traditionally fueled the state and national economies by purchasing homes, buying furniture and paying for their daily living expenses are returning home to live with and be financially dependent on their parents. Until they eliminate debt through repayment of their student loans, a feat that could take up to 15 years for some of them to accomplish, their ability to acquire assets and build a life away from their parents and families will be hindered.
The recent college graduates striving to start a new life by acquiring a home and purchasing a car may have something in common with a Toms River family facing financial challenges brought about by medical debt from a serious illness or from unemployment reducing income. A bankruptcy law attorney might be a good source of legal advice about debt relief options that might be available to them.
Source: Asbury Park Press, “Billions of dollars in debt,” Michael L. Diamond and Kala Kachmar, April 23, 2015