Unfinished college degrees and the cycle of debt

On Behalf of | Dec 16, 2020 | Bankruptcy, Blog

If you have an unfinished college degree and a mountain of debt, you’re not alone. Many Tennessee residents who have dropped out of college find it difficult to break out of the debt cycle that began while they were a student.

Fewer job prospects without a degree

Without a bachelor’s degree on your resume, it can be hard to find work that pays much more than minimum wage. At the same time, you may have student loan and credit card debt that is more than you can afford.

Debt has a way of growing

While struggling to make ends meet each month, the temptation to rack up even more debt can be great for people with unfinished degrees. Soon, the credit card that you took out to pay for textbooks is being maxed out to pay for your groceries. As the bills pile up each month, the prospect of finishing your college degree could start looking impossible.

There are programs to help people finish their degrees

Retaining students and seeing them through graduation day is a big goal for most colleges. If you didn’t complete your degree, there are programs to help you return to school and graduate as fast as possible. Ask your college about programs that may allow you to bypass prerequisites or get college credit for some of the work you’ve done outside of school.

Bankruptcy could be a solution

For many ex-students, overwhelming debt is the reason they can’t move forward with plans to return to school. If your debt has reached a crisis level, you may want to consider filing for bankruptcy.

Chapter 7 bankruptcy may help to clear away much of the credit card and student debt that you took on while you were at school. Although some government student loans are not dischargeable in bankruptcy, other forms of student debt are. If you took on private loans or used credit cards for expenses while you were in college, eliminating these bills in bankruptcy may make your other debt much easier to manage.

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