This spring, news about student loan debt has been taking front and center stage, and all bankruptcy attorneys are paying close attention.
The issue itself is hardly new. In Tennessee Mayer and Newton are following the legislation. In Tennessee, federal guidelines generally do not allow for student loans to be discharged in bankruptcy. The ongoing efforts of Senator Dick Durbin to change the situation is something the attorneys at Mayer and Newton heartily applaud and support.
The Seattle Times wonders wheter the problem is shaping up to become America’s next economic crisis. Many students come to us seeking help with student loan debt and sometimes in worst case with payday loan debt.
Having served as a debt consolidation lawyer for more than 50 years we are glad to see the problem finally getting the attention it deserves. What has been triggering all the fuss is that on July 1,2012 the interest rate on federal student loans is scheduled to double. Rates will go from 3.4% to 6.8% a big bad problem will become even worse.
Unlike other forms of consumer debt, student loan debt is growing and those defaulting is growing as well.