The National Association of Consumer Bankruptcy Attorneys leveled an economic warning shot at lawmakers recently. The group wants legal changes to give debt-laden students equal consideration with other consumers who declare personal bankruptcy.

The 860-member legal group issued an ominous report that places the nation's massive student loan debt in the same league with the housing and mortgage crisis. According to the bankruptcy attorneys' organization, borrowing students have racked up far more debt than consumers have overspent on credit cards. Total loan debt for students is an estimated $1 trillion, compared to consumer credit card debt of less than $800 billion.

More than 80 percent of the bankruptcy attorneys surveyed had possible clients with some or significant increases in college debt over the last four years. The attorneys argued that students are stuck with the bills they have, unlike other consumers who may be able to discharge debt by proving "undue hardship" in bankruptcy court. The report contends that financially overburdened students face a bleak economic future unless bankruptcy laws are eased.

A federal bankruptcy trustee from New York was among the report's supporters. He said students have no way to get out from under the heavy loan debt, even if they file a bankruptcy petition. Current law does not allow students to discharge student loan debt or extend loan payments to "get a fresh start."

Education critics complain that colleges charge too much for tuition and banks are raising student loan interest rates too high. The head of the organization described the student loan situation as "the next debt bomb for the U.S. economy."

For students who have other debts in addition to student loan debt, filing for bankruptcy may still be a viable option, because discharging some debts can still be helpful.

Source: USA Today, "Bankruptcy lawyers: Student debt is looming economic bomb," James Goodman, Feb. 8, 2012