Although the economy has picked up a bit in recent time, we are still in a recession and people feel the pinch not just in their wallets but in the limited job market as well. Not surprisingly, when young professionals are out of a job and cannot seem to find a suitable replacement, they often go back to school. Consequently, graduate school applications have increased dramatically over the past couple years. For example, the number of people taking the LSAT (a prerequisite for law school) increased 20% from 2008 to 2009 and other graduate school admissions tests saw a similar, if not greater, increase.
But just because you go to graduate school does not necessarily mean you are going to land your dream job. And when post-graduation expectations are not met, that means that there is a whole lotta debt to account for!
is the case for a Charlotte Law School graduate who is attempting to have his debts
discharged through bankruptcy proceeding—a very difficult undertaking. The
entertaining part of his petition has to do with what he expects his
I had previously blogged about this issue earlier in the year; it is very difficult to discharge student loan debt without a showing of extreme undue hardship. Since he has no chance of the school admitting that they should have known he would not be able to pay his debt, I think that bankruptcy will not be the answer for this financially strapped lawyer.
Of course, he could have avoided this mess by not getting that far into debt to start with. One article I found helpful in controlling educational debt included these tips:
- Look into scholarships and grants
- Work your way through graduate school
- Ask yourself whether your new career can realistically pay off your debt—i.e. whether or not your aspiring career will pay a salary commensurate with the cost of the debt you are about to incur?
- Put yourself on a real budget
LegalMatch also has some good options for those people considering canceling their loans. Canceling loans essentially means that you engage in a type of public service and get part or your loan obligations reduced. Teaching needy people, joining the military or other uniformed service, or performing community service are all examples of activities that have allowed for loan cancellation.
approach people take to financing their education, the long-term repercussions
for failure to pay off your debt can be lasting and bankruptcy is rarely the answer. That being said, considering what your
ability is to pay off your debt before you get into it and looking at loan
cancellation options once you are into debt seem like two viable options that
are often overlooked.
By: Violet Petran