• Posternock Apell, PC

What Constitutes “Too Much” Student Loan Debt?

Updated: Jul 13

This is the second in a blog series on student loan debt in the United States. Check out the first blog article in this series, “Student Loan Debt Remains a Significant Problem for Many Americans.”

The long-term ramifications of accumulating too much student loan debt can be severe. A study conducted by the U.S. Department of Education found that people with significant amounts of student loan debt were less likely to purchase a home, get married and have children. It makes sense that individuals, or couples, struggling with debt would delay things like committing to a home purchase or a legally recognized relationship because they fear the potential added costs involved.

The Department of Education study also found that people who have a great deal of student loan debt are more likely to work longer hours, or even take on an extra job, in order to cover their expenses and pay back their debts as quickly as possible.

When Is Student Loan Debt “Too High”?

A question that many lawmakers, education experts and financial experts have asked with greater frequency in recent years is, “How much student loan debt is too much?” Of course, there is a cost-benefit analysis here: in order to answer this question, one must determine just how much a typical college graduate benefits from accumulating the debt in the first place.

One finance expert crunched the numbers on student debt and found that recent college graduates tend to earn an average of $18,500 more per year than peers who did not receive university degrees. The point is that student loan debt does have benefits, especially if the college grad is able to go on to earn significantly more money in the future because they were able to get a degree. The key, however, is that people still need to be able to take steps to pay back their student loan debt without creating other debts or putting significant stress on other aspects of their lives.

For additional information, read the Yahoo.com article, “How Much Student Loan Debt Is Too Much? Here’s a Formula to Figure it Out.”

If you have fallen behind on your student loan payments and need help dealing with serious debt problems, you should speak with a qualified debt management and bankruptcy lawyer immediately. The Posternock Apell, PC team, which assists clients in Cherry Hill, Moorestown, Maple Shade, Browns Mills and the rest of South Jersey, as well as the Philadelphia region, can help you figure out how to best handle your student loan debt and avoid bankruptcy. Contact us now to schedule a free phone consultation.

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