I am continually amazed at the growing crisis of student loan debt. Government backed and private student loans are not dischargeable in bankruptcy except under the most extreme circumstances. The following is an excerpt from a news summary by the American Bankruptcy Institute.
The Federal Reserve Bank of New York reported today that debt from educational loans in the U.S. rose 3.4 percent to $904 billion in the first quarter, Bloomberg News reported. Outstanding student debt increased from $874 billion three months earlier, the New York Fed said in the report. ...Ninety-day delinquency rates for student loans increased to 8.69 percent from 6.13 percent in the first quarter of 2003, higher than that of mortgages, auto loans and home equity lines of c redit, the New York Fed said.