Even if you aren’t a student, you’re probably aware of the growing student loan debt crisis in America. As Congress approaches the July 4 recess, the student loan debt crisis is becoming even more serious.
If lawmakers don’t reach a decision before the recess, student loan interest rates will double from their current rate of 3.4% to 6.8%. As debtors are struggling to pay the student loans now, many people are concerned the jump will make the debt unbearable.
What You Can Do
Because student loan debt cannot be discharged in bankruptcy, it’s an especially weighty issue. However, it’s unlikely that Congress will allow student loan interest rates to see the expected jump. More likely than not, they will intervene.
For students who are concerned about the debt and bankruptcy, there is hope. Plenty of creative alternatives are available for students who wish to pay off their loans. It just requires knowing where to look. If your employer offers any kind of incentives, ask about getting help with student loans. Instead of receiving an end-of-the-year bonus, for example, see if your employer would be willing to help you pay off student loans. You might be surprised at the answer!
Also, there’s always the option of becoming a student again in order to postpone paying off student loans. Be careful. This can be a great option, if you have a strong plan! (Otherwise, it could dig a deeper hole.)
As Congress discusses the interest rate, keep in mind what you can do to take control of your situation!