‘College graduates driving increase in bankruptcy filings’

by Grace

The conventional wisdom is that a good education is a guarantee to a middle class lifestyle.  Maybe not so much anymore.

College graduates are the fastest-growing group of consumers who have filed for bankruptcy protection in the past five years, according to a new study by a financial nonprofit, which underscores the broad reach of the Great Recession.

The survey by the Institute for Financial Literacy, slated for release Tuesday, found that the percentage of debtors with a bachelor’s degree rose from 11.2 percent in 2006 to 13.6 percent in 2010. The group tracked similar but smaller increases in consumers with two-year associate and graduate degrees. Meanwhile, the percentage of debtors with a high school diploma or who did not finish college declined.

College loans cannot be expunged through bankruptcy except for very unusual circumstances.

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