Don’t Go Overboard on Student Loans
Student loans are often perceived as “good†debt as it is the kind of borrowing that is done to increase your earning power in the future. Although this is a good thing it is possible to take it too far.
It is not uncommon for people to rack up over $120,000 in student loans and then land a job that pays less than $50,000 after graduation. This makes it almost impossible to pay the debt off in a timely fashion. In fact you are almost guaranteed a lifetime filled with debt and high interest rates.
The problem is that if you do declare bankruptcy on a student loan it can never be wiped out in a bankruptcy court. There is no way of getting out of paying back a student loan unless you are permanently disabled.
If you are in too deep with a student loan, you should consider consolidating your federal loans to stretch out the payments or getting a second job to raise the cash to retire the debt.