Bruce Feinstein, Esq. Supports an Overhaul of Student Loan Debt and Bankruptcy
Queens, NY (PRWEB) July 22, 2013 -- There has been heavy debate over the issue of student loans in America as of late, and lawmakers and legal professionals alike are weighing in on the issue. The National Association of Consumer Bankruptcy Attorneys (NACBA) has several articles on the subject of making student loans dischargeable in a bankruptcy. Queens bankruptcy attorney Bruce Feinstein, Esq. has endorsed the views of NACBA, stating that student loans should be dischargeable in order to provide relief for recent graduates, their families, and ultimately, their communities.
Mr. Feinstein leverages over 15+ years of experience as a Queens bankruptcy attorney working with personal and business bankruptcy cases to educate clients about ways to get out of debt and restart their lives. When it comes to student loans, he knows that it is very difficult to have it erased in a bankruptcy. Individuals must prove that paying off the loans and interest would create “undue hardship,” or unsustainable conditions. Achieving this is not an easy feat; it requires skilled legal action and even then it is not a guarantee.
Putting such strict limitations on student loans is adding more problems to the already staggering amount of loan debt in the U.S. “The cost of education is enormous,” says Mr. Feinstein, “and the cost of limiting students’ ability to discharge this debt is creating an even bigger financial issue for our country as a whole.”
Student loan debt is enormous and is rising at an alarming rate. In late 2012, the Federal Reserve Bank of New York calculated outstanding student loan debt at $956 billion. The percentage of Americans who are delinquent in their student loan payments is higher than any other type of consumer loan.
This staggering amount keeps graduates from investing financially in their communities – they cannot buy homes or cars, create businesses, or save money to start a family.
And the current political situation is adding to the stress of the student loan situation, not just for graduates but also for students who are faced with uncertainty regarding interest rates. On July 1, 2013, Stafford subsidized loan rates doubled from 3.4 percent to 6.8 percent. A Senate deal to cancel this increase in favor of linking the interest rate to market fluctuation is still awaiting approval and faces opposition from both parties.
While Congress grapples with this problem, the fundamental issue of student loan debt still needs to be addressed and resolved. Allowing private student loan debt to be discharged in a bankruptcy, much like other types of debt, would provide much needed relief for people drowning under the high cost of loans. Mr. Feinstein believes that overhauling these policies would help families and graduates get a fresh start, offering some stability in an economy whose job creation rate is still sluggish.
Bruce Feinstein, Esq. and his team, located in Queens, New York, help clients who are filing for bankruptcy in Queens, Kings, and Nassau counties. Visit the Law Offices of Bruce Feinstein, Esq. at bfeinsteinesq.com or call (718) 514-9770 to reach his New York office.
Bruce Feinstein, The Law Offices of Bruce Feinstein, Esq., PC, http://www.bfeinsteinesq.com, (718) 514-9770, [email protected]
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