One of the prevailing reasons that many people are in debt is student debt. The loans that people took out in college to pay for myriad things -- including skyrocketing tuition, absurdly expensive books, and numerous other school supplies -- end up biting them later on in life.
When you consider that the job prospects of recent college graduates aren't particularly great, it can be hard for them to pull an income that helps them pay off this student debt. In addition, the costs associated with college are only going up. It creates a complex situation where college is practically a requirement by society nowadays if you want to get a job, but college also sends you into crippling debt that your job can't necessarily get you out of.
Maybe the most aggravating thing about student debt: you can't discharge it through the bankruptcy process. Considering it plays such a large role in the debt that many people deal with, why are our laws designed to force us keep this debt until we pay it off?
There has been movement in this area over the years, as politicians try to come up with solutions to the student debt problem. But nothing practical has come through the political pipelines. Instead, more people feel frustrated with their mounting debt problem as a result of their obscene college costs.
Bankruptcy shouldn't be your first option when you're hit with student debt. However, bankruptcy can clear out some other debts that are troubling you, allowing you to focus on your student debt.
Source: New Haven Register, "EDITORIAL: Student loan debt should not be exempt in bankruptcies," July 11, 2014