It's always been more difficult for non-college graduates to secure a well-paying job. For this reason, many college students take the risk of taking out a loan in order to get their education, because a college degree used to lead to higher paying work and a chance to pay off the debt. However, these days, many college graduates feel like it's difficult for them to secure well-paying jobs.
Over two-thirds of university seniors have an average of $30,100 in college debt. If a new college graduate can't get a job after school, this debt represents a significant hardship. Considering the fact that most college loans are not covered by the bankruptcy process, taking out college loans could be a huge risk for students.
For example, College Factual reports that the average amount of student debt for undergraduates at the University of Washington Seattle Campus is $6,428 per year, meaning most students will graduate with approximately $25,712 in debt after completing a four-year degree.
For this reason, high school students who are looking at their college options may want to investigate what kinds of debt most students have at the universities they are considering. They might also want to consider what their employment prospects will be after they complete their degrees.
Although most college debt is not covered by bankruptcy proceedings, in some situations bankruptcy can still be helpful to individuals who are overloaded with student loans. Particularly if there is other kinds of debt that can be covered by bankruptcy, resolving that debt could relieve debt sufferers to free up income that can be re-directed toward college loans after their other debt has been resolved.
Source: Time, "10 Colleges That Load Students Up With the Most Debt," Kim Clark, Nov. 01, 2016