The 1.2 trillion dollars in debt owed by baccalaureate students of the last decade may prove to be a drag on the economy, according to MSN. This is especially true if a significant portion of loans default. That’s to say nothing of young professionals unable to contribute to the supply and demand engine that makes possible capital circulation. More of their income will go to service their debt than for goods and services. So this student debt crisis affects more than students. It affects everyone. There’s a movement afoot to have student loans forgiven. Politically, it’s a non-starter for many sectors along the ideological spectrum.  Students with government loans may have a better shot at loan forgiveness, but if you’re in hock to a private lender, it can be tough. You may be able to renegotiate terms, but cancellation of the debt is quite unlikely. The U.S. Dept. of Education has a chart outlining all the types of federal student loans, which under some circumstances, can be forgiven: Studentaid.ed.gov. Type “forgiveness” in the search bar.

This is not a complete solution, however. To qualify for cancellation or forgiveness, many of these loans require that a minimum number of payments must already have been made; or that the student must take on employment in certain sectors; or serve in the U.S. armed forces under combat conditions.  There are very specific parameters for graduates to be successful at reducing or eliminating their debt, and these will not apply to most student loans.

For graduates wondering where to turn to find out if they qualify for relief, the private sector can offer some hope in the form of debt relief companies in most states. To find out if there’s one serving in your area, go to www.BestDebtCompanys.com