Are your child’s student loans draining your bank account? You are not alone.
As parents, we want to give our kids the best. We want to see them succeed. But a new study shows that the heavy weight of student debt doesn’t just hurt young adults. It causes real financial stress for their parents, too.
The Hidden Cost of College
When young adults cannot afford their student loan bills, who steps in? Often, it is moms and dads. Even if money is tight, parents will skip their own bills to help their children stay afloat.
A recent study by Indiana University and the University of Kentucky and Equifax looked at what happened when the government paused federal student loans in 2020. The results were shocking. When kids did not have to pay their student loans, their parents’ finances got much better! Link to the study.
Here is what happened to parents when their kids’ loans were put on hold:
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They had 5.7% fewer late payments on their own bills.
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They were 6.4% less likely to file for bankruptcy.
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They had more money to pay for their home and cars.
What This Means For You
This study proves something we see every day: family finances are connected. If your child is drowning in debt, there is a good chance you are drowning, too.
Many parents come to our law firm feeling guilty about their own debt. They feel like they failed. But you shouldn’t feel bad. The system makes it very hard to get ahead. You might be putting your kids’ needs first, leaving you with unpaid credit cards, medical bills, or a fear of losing your home.
Get a Fresh Start
You do not have to live with the heavy weight of debt forever. Bankruptcy is a legal tool designed to help hard-working people hit the reset button. It is a way to stop the harassing phone calls and protect the things you own.
If you are struggling to pay your bills, we can help. Our law firm works with people just like you to clear old debts and start fresh.
Call us today for a free and friendly chat. Let us help you get your family’s finances back on track.
Walker and Walker is the nationwide leader in discharging Federal Student Loans