Living in Bankruptcy Confusion? Escape The Stress! Nothing But Blue Skies From Now On.

The Student Loan Series: Sequestration & Student Loans

Just when you thought the student loan mess couldn’t get worse, it does.

Sequestration is going to mean more than just furloughs for government and civilian employees and longer lines at the airport.  It is going to mean bigger student loan bills for those who wish to attend college.

Under the sequestration deal Federal Pell grants will go untouched but the federal work study program is poised to lose 49 million dollars from its program.  Supplemental education grants stand to be cut back by 37 million dollars.  And those long wait times when you are calling Direct Loans for help are going to get longer as employees are cut back to meet the new budget requirements.

This all adds up to higher student loan debts for low income students and the very real prospect that they will be priced out of college completely.

Those who decide to go will be saddled with increasingly high student loan debt that they will spend a lifetime paying instead of buying homes and starting families, both of which are essential the economy growing again at some point in the future.

But there is some light at the end of the tunnel for those who decide to borrow and make a meaningful effort to repay their loans.  The fifth bill that would make private student loan debt dischargeable in bankruptcy has been brought forward in Congress and is on its way to the Judiciary Committee. The  survival of this bill is looking more likely than it ever has before as the nation faces the staggering student loan debt and its effect on the economy up close and personal.

Here are Bruce C. Truesdale PC we will be keeping a close eye on this one and our fingers crossed for all the current and future cash strapped students out there.

Interested in how we can help you with your student loans?  Give us a call at 732-302-9600 or fill out our online consultation form and we will call you.