Poor Economy Leads More College Grads to Move Back Home - Atlanta Bankruptcy Law News

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Poor Economy Leads More College Grads to Move Back Home

Almost four million people in the United States between the ages of 25 and 34 are living with their parents, even after they've graduated with a college degree. Perhaps these young adults simply enjoy the comfortable lifestyle that they have at home, but some researchers say that the poor economy is playing a factor when it comes to college grads moving back in with their parents.

ABC News reports that the average college graduate in the United States emerges with nearly $20,000 in student loan debt and another $4,000 in credit card debt. The graduates of the Class of 2009 in Georgia had an average of $16,568 in student loan debt, according to ProjectStudentDebt.org. With such a high rate of unemployment and the large payments on student loans, many people around the country feel that they have no other choice but do move back into their parents' home that is rent-free.

The trend of moving back into the parents’ home is actually growing in popularity, most likely due the weak economy. About 65 percent of college graduates are moving back home compared to only 53 percent just five years ago. But perhaps a better option than moving back home with Mom and Dad is to simply learn about what debt relief options are available for college graduates in debt.

Chapter 7 bankruptcy might be an option for some students to consider, but beware that you’re not usually able to discharge student loan debt through any type of bankruptcy. FindLaw states that student loans can generally only be discharged through bankruptcy if the debtor can show that the burden of repaying the student loan would impose a severe hardship

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