October 03, 2013 at 9:34 PM
Student loans are one of the most dangerous types of debt to have, says Suze Orman, who focuses this week's episode of "The Suze Orman Show" on ways to tackle the burden.
Recent reports show that Americans owe $1 trillion in student loan debt, that's about $200 million more than they owe in credit card debt. The story worsens when you factor in interest rates and ramifications for not paying on school debt.
“It’s a real travesty what is going on in our country with student loans and our children,” stressed Orman. “Students are paying more in interest on student loans than what they pay for a car or a mortgage, and those loans (auto and mortgages) can be discharged in bankruptcy,” said Orman.
Unlike with most debts, the current federal law states that student loans cannot be dissolved or written off in a bankruptcy. This is a point of contention for Orman, who said “I couldn’t agree with Sen. Elizabeth Warren, D-Mass. more,” referring to Warren's vote against the recent Bipartisan Student Loan Certainty Act of 2013.
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