Some lawmakers have proposed bills canceling all student debt across the United States but is that really possible? It is estimated that combined student loan debt throughout the nation is $1.6 trillion.
In addition to this debt forgiveness, one bill proposes free undergraduate programs at public colleges and universities going forward, making college free for everyone.
Opposers of the bill explain that this would not prevent all future student loan debt as private college/universities and graduate programs would still require many students to take out loans. Additionally, this proposed bill would not offer any benefits to the individuals that had already paid off their student loan debt.
The reason for the bill
Many lawmakers want to make college more affordable and accessible for people nationwide. At this time, it is too soon to tell if nationwide student debt forgiveness is possible. Whether this proposed student loan debt forgiveness happens or not, Americans may still be facing large debt.
How did so many Americans get into debt?
Medical bills are the number one cause of debt in the United States. Over 66% of all bankruptcies are related to medical bills. In addition to medical debt, home and credit card debt account for large portions of the overall debt Americans face.
It seems that Americans tend to spend more money than they make. This overspending leaves citizens with unaffordable mortgages, car payments and credit card debt. Nearly 45% of Americans recently filed for bankruptcy due to overspending or living outside of their means.
What you can do to get out of debt
Filing for bankruptcy is an effective way to get out of debt. Depending on the type of bankruptcy you file, you may be able to eliminate your debt or repay your debt over time. Bankruptcy may be able to give you the fresh start that you need.
Remember that unless this proposed student loan debt forgiveness bill passes, you will still have to pay back your student loans. Neither Chapter 7 or Chapter 13 bankruptcy permit student loan forgiveness.