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College Grads More Likely to File for Bankruptcy

According to a new study from the Institute for Financial Literacy, the rate of bankruptcy filings among college graduates is increasing.

One assumption is the burden student loans place on graduates is increasing at the same time that salaries and income opportunities is decreasing.

While the study only tracked people through 2010, I’m sure the numbers will continue to increase through 2011.

According to the survey, the percentage of bankruptcy filers with college degrees rose from 11.2 percent in 2006 to 13.6 percent in 2010.

Bankruptcy filers without high school diplomas or who did not finish college actually dropped slightly.

One alarming trend that I first heard about from Howard Dvorkin of Consolidated Credit Counseling in his recent presentation at my class, was that the age demographic of people seeking help is shifting older.

The bankruptcy study found people between 18 and 34 had a 31 percent reduction in filing rates while people 55 and older that file bankruptcy has increased.

According to the study of 50,000 consumers that completed mandatory credit counseling pre-bankruptcy session, 70 percent said they were overextended in credit card debt.

Hat tip to a loyal reader and tipster (send in your tips here) that sent this in.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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