Student loans seen as potential ‘next debt bomb’ for U.S. economy

Parents Forum
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<p>"Bankruptcy lawyers have a frightening message for America: They’re seeing the telltale signs of a student loan debt bubble that is placing increased financial pressure on families struggling with their children’s mounting debt. According to a recent survey by the National Association of Consumer Bankruptcy Attorneys, more than 80 percent of bankruptcy lawyers have seen a substantial increase in the number of clients seeking relief from student loans in recent years.</p>

<p>In most cases, those clients could not meet the federal hardship standards that are necessary to discharge a student loan through bankruptcy proceedings. Instead, many of these parents or guardians who co-signed the student loans face the prospect of losing their life savings, cars or homes to collection agencies for aggressive private lenders.</p>

<p>William Brewer, head of NACBA, has said, 'This could very well be the next debt bomb for the U.S. economy' — something akin to the housing mortgage loan crisis that triggered the U.S. financial crisis." ...</p>

<p>Additional background on what now appears to be an inevitability.</p>

<p>Student</a> loans seen as potential ‘next debt bomb’ for U.S. economy - The Washington Post</p>

<p>More: Are</a> Student Loans A Ticking Time Bomb For The Economy? - The Consumerist</p>

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<p>Wait for it . . . wait for it . . . BAIL OUT!</p>