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Massachusetts credit unions look to student loans for business

Many Massachusetts students are in the process of making decisions about what colleges they want to attend in fall of 2014. Parents may share concerns about the future of their children and how to make sure they are financially responsible. But when someone is shouldered with debt and they foresee significant burdens in the future because of student loans, one option to consider is debt reorganization bankruptcy.

Many Massachusetts credit unions are adding private student loans to their services as some major commercial banks get out of the business. According to a recent report, student loans have a default rate of 12 percent, which is just about as high as credit card debt default rate of 11 percent. One of the reasons credit unions are looking into these new services is that they provide high interest rates because of the increased risk.

Getting a loan for college is something many students will have to do to make ends meet. Getting out of school with high levels of debt and a poor job market can add a significant load of stress in a person's life. One option for those dealing with high levels of debt is personal bankruptcy. While it will not help with student loans, it can help with other forms of debt that could put the borrower on the path to a fresh financial start. It can also result in more manageable payments based on income.

When students take out loans it can end up being a significant burden. Personal bankruptcy allows a Massachusetts resident to reorganize debts and find a manageable way to reduce student loan balances.

Source: The Boston Globe, "Taking risk, credit unions push student loans," Deirdre Fernandes, March 3, 2014

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