Chart Student Loan Debt Soars Since 2003 Statista The case law suggests that distinguishing whether a student loan is a consumer or nonconsumer debt involves two inquiries. the first inquiry is how the debtor used the loan proceeds. if the loan was used to cover living expenses while pursuing a degree, then it’s considered a consumer debt. Student loans, like all consumer debt, are taken out with the expectation that the borrower will pay them back. all consumer debt can be broken down into two main types, either secured or unsecured.
New Student Loans And Debt Outstanding By Type Of Consumer Loan In The Examples of business and consumer debt. taxes. taxes, including income taxes, are generally not consumer debts. most courts consider taxes to be non consumer debt. although this sounds odd, it's because no one voluntarily "incurs" tax debt for personal, family, or household purposes. student loans. some courts count these as consumers, and some. Then you do not have “primarily consumer debt.”. so if all or most of your student loans can be considered non consumer debts, and those are larger than your consumer debts, you can likely file a chapter 7 case when otherwise you could not have. the above earlier blog post focused on the law locally on this question, which is inconclusive. The reasons student loans are generally considered good debt can include: higher future earning potential: data from the u.s. bureau of labor statistics shows that educational attainment leads to. Consumer debt: definition and average balances in the u.s. consumer debt rose in the first quarter of 2023 to hit $17.05 trillion, as reported by the federal reserve bank of new york. while balances rose on mortgages and auto loans, credit card balances stayed relatively level.
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