Not every Arkansas resident with high levels of student loan debt is in their 20s. In reality, many older people remain saddled with these accounts. It is estimated that people over the age of 65 hold $18.2 billion of the nation’s student loan debt. As retirement nears, it becomes increasingly important to eliminate debt and save for the future. Bankruptcy offers one path to reach that goal.
Personal bankruptcy will not lead to the discharge of student loan debt. However, that is not to say that the process cannot make a world of difference to individuals who file. Bankruptcy can lead to the elimination of many other forms of consumer debt, including credit cards and medical bills.
Many older people are in financial turmoil based on an unexpected illness or injury. When medical bills pile up, student loan payments often fall by the wayside. The interest continues to rise, however, making it even more difficult to catch up. If something is not done to correct the course, many people will go through the rest of their days plagued by student loan debt.
For older people in Arkansas who are struggling to cover all of their expenses and juggle debt service, it is important to consider whether personal bankruptcy is a viable option. By removing many of these accounts through bankruptcy, it may be possible to catch up on student loans and work toward building savings for retirement. The best way to make an informed decision on the matter is to discuss various options with a bankruptcy attorney.
Source: salina.com, “Student loans shouldn’t cripple the elderly“, Sept. 21, 2015