Filing Bankruptcy on Student Loans – I Don’t Think So

Over the last 20 years, the US has put a high priority on higher education. Everyone wants their kids to go to an Ivy league university and get a high-paying job after graduation. The only problem with this theory is it doesn’t work. There aren’t any high paying jobs available to college graduates these days. In fact, the unemployment rate of new college graduates is around 40% when these kids get out of school. To add insult to injury, they will be burdened with student loans from this expensive education. Many unaware young adults think they can file for bankruptcy and eliminate these loans, not so. Sure education is good but not when it leads to filing bankruptcy. The problem is when young adults are saddled with student loans, the minimum wage job they can get isn’t enough to help them survive. So now you have a new generation of college graduates sleeping on mom’s couch while they’re filing for bankruptcy to get rid of other debt they can’t afford to pay because of the student loans.

Many of these students continue their education to avoid paying the student loans. There are many young college graduates applying at big-box retailers that have PhD’s and master’s degrees. It’s not that they didn’t want to get out of school and get a job, but when they found out that no jobs were available, they double downed and went back to school to further their education. One thing that many people don’t know is student loans aren’t paid back while the individual is going to school. So many are now becoming professional students as they’re racking up huge amounts of debt. The student loan debt has gotten to such exorbitant amounts, it is now called a bubble by many experts. This debt has now surpassed $1 trillion in the US. This is just plain old crazy, what happened to the days when kids went to junior college for two years and transferred to a four year university, working their way through school waiting tables. Back in those days, kids emerged from school being debt free. There are multiple people here to blame when it comes to this topic. First, there has been a high priority but on higher education all the way from K. through 12. It has been pounded into the kids heads that they won’t be anything unless they get an expensive education. Second, the government has made these guaranteed loans available for anyone and everyone that asks for one. Consequently, many of these individuals don’t realize what they’re getting into and find themselves changing careers early in life while not making enough money to live and pay these loans back.

Now, when a young in debt adult decides to file bankruptcy, the first question they will ask the bankruptcy attorney, is it possible to wipe out student loans in the bankruptcy discharge? When the bankruptcy attorney says no, they will probably follow up with they heard it was possible because they read it on the Internet. Technically, it is possible, but the burden of proof is pretty extreme for an individual to be able to include them in their bankruptcy filing. The person will need to show that they never will be able to pay these loans off. So as a rule of thumb, a bankruptcy attorney will look at the person’s age and physical condition. Just because someone can’t get a job isn’t a good enough reason to discharge these loans. Usually, it will take someone suffering a catastrophic accident or illness where they become disabled or someone is becoming elderly and no longer in the job market. It’s probably much easier to find the elusive Chupacabra in the wilderness. In other words, it’s next to impossible to file bankruptcy on student loans.

What Is the Secret to Student Success?

Within the field of higher education, one of the important metrics for gauging the effectiveness of programs is student retention. Retention measures the number of students that a school has been able to keep in their programs and in contrast, attrition measures the number of students who have withdrawn – either voluntarily or involuntarily. Another important word for this field is persistence, and that is meant as a student measurement. While retention and persistence may seem to measure the same criteria, I have made a distinction based upon the actions taken. For example, a school may have retention programs in place; whereas, helping students succeed in their programs bolsters their ability to persist and continue to make progress.

The sector of higher education that I have the most experience in is the for-profit online college, with roles ranging from online educator to faculty development specialist, Chief Academic Officer, and Dean. For this industry, the typical retention rate is 50% or less. Retention initiatives that have been implemented in many of the schools I’ve worked with included changing feedback requirements, grading requirements, and the curriculum itself to make it easier for students to pass their classes. While these initiatives may provide some help for the bottom line, I have found that it has little impact on the student experience. What matters most for students is their ability to persist and be successful in their attempt to be involved in the learning process. Is there a secret to student success? In my experience, I have learned there is and it has to do with the support and resources students receive from the school and their instructors.

Growth of the Non-Traditional Student

When I entered the field of higher education over ten years ago, the phrase “non-traditional student” was becoming popular and I have watched it become prominent now – especially with regards to how courses and curriculum are designed for students. The essence of this phrase is meant to describe new types of students, other than those who are starting college right out of high school, who are enrolling in college level courses and programs. This one of the important factors that drove the growth of the for-profit online college industry. It is not uncommon to see online programs being offered for what is called the “working adult” – with promises made that the degrees obtained will help them advance within their chosen career.

As a general rule, the non-traditional student can be a mix of someone who is older, part of a minority group, speaks English as a second language, attends school part-time, is employed, and has prior life experience. I have had non-traditional students in my online classes with a range in ages from their 30s to 60s, with many who were also working full time. What this means for these students is that their school work is not their only responsibility and that can create periodic time management challenges for them. In addition, by having life experience these students cannot be treated like blank slates, which is someone waiting to receive knowledge being dispensed.

The Role of an Educator

Within traditional colleges and universities, the role of the educator has remained largely unchanged. This means they are at the front of the class and the center of attention during each scheduled session. It is a teacher-centered approach to instruction that is utilized in primary education. This educator typically provides a lecture and students are expected to study for quizzes and exams. In contrast, an educator who is teaching online courses is finding that their role is evolving. The very nature of a virtual learning environment puts the primary responsibility for learning on the students.

I have coached many traditional educators who have tried to make the transition to online teaching and found it to be difficult to adapt to as traditional teaching methods do not translate well. I can empathize with them as educators devote time and effort into developing their career and becoming a teaching expert – and then having to learn new methods may produce a lot of natural resistance. Online teaching requires changing the focus from teacher-led to student-centered instruction. Does this have a direct impact on student success? The answer is absolutely yes, as an educator must be comfortable in their role and understand the needs of the students they are charged with teaching.

Advisor vs. Success Initiatives

The traditional responsibility for working with students has been part of the role of the academic advisor. The advisor is someone who may assist students with a wide range of tasks that includes registration, enrollment, course selection, and the list continues. Often this was a reactive role and that means an advisor could address a wide range of questions but only when initiated by the students. Within the for-profit online college industry, I have seen the advisor’s role evolve and include responsibility for conducting follow up for those students who were at risk for failing and/or dropping their courses.

There have been other initiatives taken by online schools to help students persist and one that I was part of was a success coach program. I was responsible for conducting a periodic check-in with students, and these were students outside of the classes I was assigned to teach. Unfortunately, the project was short-lived and to this day I am not sure of the reason why it was disbanded. I have also watched an increase in the number of resources that are made available to students as a means of helping them succeed, and one of the most common resources provided is through the use of a writing center.

There is a newer non-profit online school that has been hiring mentors, who are meant to take the place of faculty. Students do not have regular classes and instead, they study to take an assessment – usually with a very low or minimal required passing score. It is similar to correspondence courses that preceded the online for-profit industry. There isn’t clear evidence yet to support that someone calling students every week, without having course specific knowledge, subject matter expertise, or higher education experience, has an impact on student persistence rates.

How to Support Student Success as an Educator

What I can state with certainty, based upon my experience and my work with hundreds of educators, is that students need an instructor – and just as important, they need ongoing support. I realize this statement goes against the foundational concept of a massive open online course or MOOC; however, I know that an educator serves as the front line for helping to implement retention strategies put into place by the school and being able to work with students to help them persist or succeed. This is where the secret to student success can be found and it is within the relationship that is established with students. An instructor is in a position to develop a relationship with students because they are working with them through learning activities, feedback, and discussions – and all of these tasks prompt learning. In other words, learning is relational. Below are strategies that any educator can use to help support student success, regardless of the class or subject matter being taught.

#1. Provide Ongoing Support: Are you keeping track of the progress of your students? Every student has developmental needs, even those who are doing exceptionally well in your class. When you are familiar with their needs you will know what resources to recommend – whether those are sources provided by the school or supplemental resources. Even recommending additional materials to review, along with subject matter related videos, can help to enhance the learning experience and encourage engagement in the course. Why? The more interested a student is in the course, and the more they are able to develop their areas of weakness, the more they are going to be able to persist.

#2. Provide Engaging Feedback: I have heard many instructors state that students do not read the feedback provided and if they do, those students never seem to implement the suggestions provided. What I have discovered is that students develop a perception about feedback based upon their experiences. As an instructor, I have tried to provide engaging feedback by taking time to insert comments directly into student papers and ask questions, offer insight, share my expertise, and relate the topics to the real world. Again, if students find that you have taken time to do more than provide a grade, they are going to take time to at least consider what you have written. The more engaging your feedback becomes, the more likely they are going to maintain an interest in performing their best.

#3. Develop a High Level of Responsiveness: For some students, the thought of asking a question or making a request for help can be intimidating – especially at the beginning of a class when there isn’t a relationship established with their instructor. When students approach you, and seek your assistance, your ability to demonstrate responsiveness is going to make a difference for them. If you can demonstrate a genuine concern for their request, and make it a point to help them in a meaningful manner, they will develop a perception that you care and become more willing to work with you in the future. They will also be more receptive to your coaching and feedback.

#4. Always Be Aware of Your Disposition and Tone: As an educator, you must be mindful of how you feel and the emotions you are experiencing as you work with students, as this will have a direct impact on your disposition. It will extend further into the tone of your communication and for an online class, you are represented by the words you use and you must consider how those words will be interpreted. While you need to remain professional, it will be helpful to add some warmth to your messages to help develop a connection with your students. For example, consider the difference between the following two options for responding to a student’s email: #1) “Student: This is my response to your email,” or, #2) “Hello Student: It is good to hear from you. Here is a suggestion to help answer your question.” Do you see how the second option communicates professionalism, warmth, and a genuine concern for helping?

#5. Provide Follow-Up and Follow-Through: This probably one of the most important elements for student success and that involves going beyond answering questions or providing feedback. It means you are paying attention to your students, all of your students, and you make it a point to maintain coaching and mentoring attempts at all times. If a student asks a question via email, and it involves something complex or may not be easily resolved, a simple follow-up email or call can support their success. When a student is struggling, has performed poorly, or is not active in a class discussion – don’t wait to see if they improve. Contact that student right away and offer assistance. In addition, consider the value of a phone call and how a personal touch could influence their well-being. As another example, if you tell students you don’t have an answer to a question, be sure you find an answer and then follow up with them.

With all of these strategies, you are working to bring out the best in your students and nurture their ability to succeed. This leads to another question: If learning is relational, can someone other than an educator work with students to help them succeed? From my experience, the answer is yes. If there are individuals who are tasked with helping students succeed, and are trained to do more than ask “how are you doing” types of questions – they can also develop a productive working relationship. It then becomes a matter of training those individuals to understand the many factors that make up student success and persistence, including self-motivation, grit, determination, and resilience – along with academic habits such as time management and study habits.

The role of someone who serves as a success coach needs to support both the students and instructors. For example, an instructor can utilize an early alert system and notify the success coach when a student is at risk. The coach can also support the students by devoting time and attention to all of them, checking in with them- even when it may seem that they are doing well in their classes. While adding a role like this to online degree programs requires a financial investment, the ultimate goal is to improve student success or their persistence rate. This in turn can have a positive impact on student retention overall. Student success is not a one-time event or something that occurs because a school changes its courses or curriculum. The secret to student success is the relationships that are established, nurtured, and maintained at all times with students.

The Current Student Loan Crisis: Why It Matters to You

In the United States, the current student loan debt surpasses $1,200,000,000,000 – and that number increases every day. Needless to say, if you are one of those unfortunate brainiacs saddled with a ton of student loan debt, you are far from being alone. Many people are now wondering if they made the right decision about pursuing higher education due to the high payments they are faced with directly upon graduating.

One argument is that you can never go wrong pursuing an education because an uneducated population will cost more in the long run. While you cannot discount the argument entirely, the other argument is simply: do the costs of higher education outweigh the benefits? So you must ask: how does this much debt impact everyday life in the United States? Much more than you may think.

Here’s a closer look at why the current student debt crisis matters to everyone, including you.

A Major National Problem

When a student graduates with a staggering amount of student loans, a few things may happen.

  1. That person cannot move out on their own.
  2. That person cannot start a family.
  3. That person starts work that (likely) does not begin to cover that debt.
  4. That person might fall behind on payments quickly.

This often leads to default status, and a default does even more damage including potentially ruining a person’s credit for a long time – even for life. Once a person’s credit is ruined, the following happens:

  1. That person cannot buy things like a car or house.
  2. That person still isn’t living independently.
  3. That person still cannot start a family with any sense of security.

Why does any of this matter? Here’s a further breakdown of why student loan debt is out of control.

Impacting Our Economy

When recent graduates do not buy houses and start families, the economy (on a very basic level) does not grow. So many graduates are now leaving school with so much debt that the very things that used to help the economy grow are now becoming obsolete.

Making matters worse, these graduates often wind up defaulting on loans simply because the majority of jobs offered post graduation do not pay enough to repay student loan debt. It’s a vicious cycle. The fear is that the American Dream is dying right before our eyes. So, we can either redefine the American Dream or we can begin to deal with the reality of student loans.

How Student Loans Are Workable for Higher Education

Studying in a global university is an uphill task. With increasing admissions and other expenses, parents cannot guarantee the finance for their child’s higher education. Securing admission under this scenario requires money and time management too. The range of expenses include admission costs, hostel rent books and the tuition fee. Parents dream of a successful career, and therefore, nothing should come in way of pursuing the studies. Parents help to a great extent money wise, but even they have their limits. In this situation, students are offered an opportunity to take care of their expenses in the form of short term student loans. Availing the loan is fairly simple. A loan benefits by providing the funds to take care of their cost of education.

Advantage of the Student Loan

The loan is important to anyone looking forward to secure finance for their higher education. The acquired funds have capability of helping the students for further education. There are a few advantages to these loans listed here that will help the borrower make a sensible decision:

Minimal Interest Rates

Before applying for any type of loan, people are cautious about the interest rates. Nobody wants to burden themselves with whopping interest rates that would result in non-repayment of the loan amount. Student loans are suggested by many brokers on competitive APRs and manageable terms of repayment. The borrowers have an option to consider all the available offers through a comprehensive online research and compare the prices. Only after proper research, the customer should approach the regulated broker.

Flexible terms of repayment

Before countersigning the documents, applicant must clearly understand the terms and conditions that are being laid down. The intermediary will explain them to the borrower, if he is unable to understand. The repayment provisions are kept trouble-free. The payment amount is decided keeping in view the financial condition of the applicant. Sufficient time is provided to repay the borrowed money. Paying off the loan is reflected on the credit report, finally improving the credit score and establishing the credibility.

No requirement of guarantor

When the individual applies for the loans online, there is no need to provide the guarantor. Adviser makes sure, the lender disburse the funds without putting forth the condition of arranging the guarantor. This saves a lot of time, as you do not need to search for the person, to act as your guarantor and support your application.

Student loans not only serve the purpose of providing quick funds for the education. These types of loans also assist in creating a positive credit history. The funds are not provided out for free. The short term student loans must be repaid when the borrower completes his or her education. Adequate time is provided for the payback.