bankruptcy and student loan debt

Kids and Credit -- Paper or Plastic?

EDITORS NOTE: Too many kids with credit cards lead to growing bankruptcy filing among the young and the reckless. Tom Turpel is editor of Pacific News Service-sponsored Sprawl, a magazine for suburban youth. DUBLIN, CA If you cant get a drivers license, you shouldnt get a credit card, says Dustin Hyrn, a student at Dublin High. Hyrn, who is 17, thinks the appropriate age to get a credit card is when you turn 18, the same age you become a legal adult. Even then, however, young people can find themselves in a debt trap. A recent study by the Credit Abuse Resistance Education (CARE) program showed the number of 18- to 24-year-olds declaring bankruptcy has increased 96 percent in the last ten years. Credit payment problems are one of the key reasons younger people file for bankruptcy. According to the CARE report, Bad credit can negatively affect teens in the future -- their ability to get a job, a loan, basic insurance or even an apartment.

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Students look for ways to pay for college

Jeffrey Blodgett said he borrowed $5,000 to pay for college expenses and expects to pay off the amount when he graduates from Georgia State University. He is transferring to the institution from Columbus State University this fall.A graduate of Lovejoy High School, the 19-year-old anticipates that paying off the federal loan wont be difficult, though he said students often worry. I guess everyone has a little paranoia, he said.Student borrowing has increased substantially from 1993 to 2004, though levels vary for graduates of different degree programs, according to a brief from the American Council on Education Center for Policy Analysis. The center focuses on issues such as financial aid.Planning to pay for college wasnt a big concern for Blodgett, who said he was a recipient of Georgias HOPE Scholarship program.

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