As many college students in New Jersey are looking forward to their future, there are many that may also be hoping that 2013 is a better year financially than it was last year. With record numbers of people losing their homes and filing bankruptcy, many people are struggling to find a way to recover from the recession. Making financial New Year's resolutions may give not only college students, but everyone a head start on personal recovery.
When one declares bankruptcy, the hope is that the majority of debt can be discharged or restructured in a way that helps a person regain financial footing. For most debt, including car loans, mortgage, credit card debt, medical debt, and even gambling debt, this is true. However people everywhere, including in New Jersey, are finding that one often-huge debt is not dischargeable in bankruptcy: student loans.
For many people in New Jersey, student loans can make up a large part of their financial problems. Students, especially those at for-profit schools, are often unable to secure enough government aid to cover the high tuition. They are forced to rely on private loans to fill the gap. However, these private loans have a much higher rate of interest, placing a huge burden on borrowers.