Many Americans believe that statement to be true, even in an economy where recent college grads have a tough time finding sustainable careers and job prospects become something of a tough find.

However, there are factors in which determining what a college degree will mean to you or your family whether you are deciding on where to go and what to do after high school or planning on returning to college to obtain a degree.

According to The Wall Street Journal, students and families lack sufficient data to determine the long-term viability and profitability of a college degree over a life span.

Not knowing what college will cost you or how it will benefit you in the span of your lifetime can have dire consequences in the form of student debt if you do decide to pursue a degree in higher education.

There are distinct advantages to those who obtain a college degree. According to the U.S. Bureau of Labor Statistics, college brought a higher weekly pay of $1,053 versus the $638 weekly amount to those who only obtained a high school diploma in 2011.

Also, last year’s unemployment rate for college graduates was 4.9% as opposed to the 9.4% unemployment rate for high school graduates without a college degree.

The non-for-profit organization The College Board, calculated that a typical student who enters a four-year college at age 18 and borrows for the entirety of his collegiate career, earns enough by age 33 to make up for his college costs.

Although this may look enticing to high school juniors and seniors applying for college, the data assumes that every student goes to a public college and also doesn’t account for dropouts and extra years needed to obtain degrees.

The schools with the best returns on investment often focus on majors concerning engineering, computer science, economics, and natural-science programs.

Colleges with the worst return on investment tend to focus on nursing, criminal justice, education, and sociology.

The Nuts And Bolts of College Finances

Recently, outstanding student loans surpassed credit card debt as the nation’s largest debt problem amongst Americans.

A staggering issue compounded by the fact that, unlike credit card debt, student loan debt is not typically forgiving through filing for Chapter 7 or Chapter 13 bankruptcy.

In an economy where many parents and students alike have faced tough financial situations such as bankruptcy and foreclosure, student loan borrow is on the rise. Applications for federal assistance has rose 59 percent since 2006, according to The Wall Street Journal.

Many schools that offer financial aid have funds set aside for the appeal processes that arise from financial aid cases being awarded. Many students find themselves “under covered” and perform appeals on the amount they get awarded.

Experts point to the appeal process as a viable way to potentially increase your financial aid coverage, just as long as circumstances call for it (i.e. your parent’s business recently filed for bankruptcy or you lost your home to foreclosure). The more information the college has on the finances of the student and their family, the better knowledge they have to make the best possible offer.

As difficult as it sounds to obtain a desirable amount of financial aid to assist you in your collegiate career, many believe it is worth the hassle. Ask yourself, is college right for me? Do your homework on financial aid and you’ll be better prepared to take college by the horns and make a lifelong investment that will payoff big in the end.

Suleman became famous after giving birth to octuplets who were the result of an assisted reproductive technology procedure. She is a mother of a total of 14 children.

Suleman claims she owes creditors between $500,000 to $1 million. According to court documents she has less than $50,000 in assets.

Octomom’s most recent public payday was a highly publicized semi-nude feature for U.K magazine Closer in which she was reportedly compensated $10,000.

Creditors of Suleman’s include Verizon Wireless, Kaiser Permante, DirectTV, Sylvan Learning Center and the owner of her home that was recently the subject of news stories due to the poor living conditions the children were reportedly to be living in. According to CBS News, Octomom owes more than $30,000 to the owner of the four-bedroom home that she currently is renting in California.

Earlier this month Suleman reportedly received death threats after announcing that she had gone on state assisted food stamps in California, according to Reuters.

In an attempt to earn income to potentially pay off creditors, Suleman has recently announced that she will be performing in a pornography video. The amount she is to be compensated is over $10,000, according to Reuters. In recent years, pornography company Vivid Entertainment offered Octomom $1 million to star in an adult film.

Celeb Bankruptcy, A Cautionary Tale

Octomom joins the ranks of Allen Iverson, Dennis Rodman, Warren Sapp, Michael Vick, Gary Busey and many other celebrities that have filed for bankruptcy in the past year.

With Allen Iverson blowing $154 million in NBA earnings, it’s hard for the American public to fathom how these abundantly rich individuals go broke. The fact is, the economic situation the United States finds itself in is not just affecting the middle to lower class. Celebrities are not immune to bad business deals or foreclosures, just like the rest of us.

As hard as it is to feel bad for a celebrity who blows $154 million (that’s just his NBA salary throughout his career, lucrative endorsement deals and other business ventures are not included in that figure), we have to be cognizant of the fact that we’re all human beings and we all make mistakes. Bankruptcy is still bankruptcy, no matter what your previous life entailed.

It may seem like celebrities have it easy when it comes to filing for bankruptcy, and sometimes it is easier for celebrities to get themselves out of debt, but we must remember that everything is not what it seems. Celebrities face the same struggles as the American public does when it comes to debt and we can use these celebrity stories as important educational tools in which we can learn from.

Many Americans may not be able to land that role in a new reality television series or get signed to a professional sports contract after filing for bankruptcy, but Americans can take steps to enable a better future after bankruptcy.

Sources say that the average person in his or her 20s has a total debt of $45,000, which includes common debts like credit card debt, student loans, and home mortgages.

With such remarkably high levels of debt, it’s little wonder that hundreds of thousands of young Americans choose to file for bankruptcy every year.

Low Levels of Financial Literacy Lead to Rising Debts

The financial picture for young Americans is pretty bleak, and sources suggest that this is a direct result of low financial literacy:

• Financial literacy in high schools. According to the Treasury Department and the Department of Education, which teamed up to survey financial literacy in U.S. high schools, the future does not look bright. The average score on a financial literacy test administered last year was a 69 percent, which would barely qualify as a passing grade in most classes.
• Education gap. Such low levels of financial literacy are no surprise, given the total lack of attention personal finance is given in American high schools. Fewer than half of all states require high school students to take an economics class, and fewer than 20 percent of states make their students take a personal finance class, according to a study from the Council for Economic Education.
• Link between education and lower debt. Not surprisingly, the 13 states that do require their students to take a personal finance have much higher rates of financial literacy. And students who took these courses were much more likely to avoid credit card debt, according to sources.

Youth See Bleak Financial Picture

In addition to the low levels of financial literacy, a bleak economic outlook has also crippled younger Americans’ ability to secure jobs.

The unemployment rate among youth is higher than 12 percent, which is significantly higher than the unemployment rate for most Americans, which is currently hovering around 8 percent.

And this comes at a time when younger Americans desperately need income to pay their debt. The average student in the class of 2010 owes roughly $25,000 in student loan payments, according to The Project on Student Debt.

Moreover, the average person between the ages of 20 and 29 owes almost $2,000 in credit card debt. Many experts claim that poor financial literacy is directly linked to these disturbing levels of debt.

The firm’s struggles have been attributed to nearly 70 of their 300 partners, about 23%, leaving the firm.

According to American Lawyer Magazine, Dewey & LeBoeuf ranked 29^th out of the nations top 100 profitable law firms in gross revenue as recent as 2010.

Dewey & LeBoeuf, which is based out of New York, has about 950 lawyers in 25 offices around the world.

'Prepack' Bankruptcy Filling Sought

A person with knowledge of the situation has stated that Dewey & LeBoeuf could be considering a prearranged bankruptcy filing, according to The New York Times.

The prearranged filing could result in a reorganization agreement with its creditors as well as a merger with another law firm.

The prepackaged bankruptcy is an alternative to a tradition Chapter 11 filing in the sense that it is a quicker option and could potentially spare the law firm legal hurdles.

Reuters has reported that Albert Togut, a Chapter 11 bankruptcy lawyer who has represented major organizations, is working with at least one of the firm’s new management team. Reuters also stated that it doesn’t necessarily mean that Dewey & LeBoeuf is planning on filing for bankruptcy but may be seeking legal help in renegotiating their debt.

Togut has been counsel to a number of major company’s Chapter 11 filings including General Motors, Chrysler Automotive, and Ambac Financial.

According to The New York Times, Martin Beinenstock, a leading Chapter 11 bankruptcy lawyer was recently appointed to lead Dewey & LeBoeuf’s restructuring efforts.

The restructuring is being implemented to negotiate the preexisting debt with the firm’s banks JPMorgan Chase and Citigroup.

Assessing The Debt

According to Reuters, one debt Dewey & LeBoeuf is carrying is a $125 million bond, a rare debt for a law firm to carry.

Also, contributing to Dewey’s financial burdens is a number of high profile, highly compensated attorneys that were acquired as early as last year by the law firm. After failing to meet their profit targets, Dewey was unable to meet their compensation obligations, according to The New York Times.

Citing the financial crisis of recent years, the law firm has seen a drop in demand of its services.

The firm commented that the recent defections were in-part a way to increase profitability.

Experts have said that Dewey & LeBoeuf are the largest of the struggling law firms to have publicly entered a danger zone, where partners have left due to the financial uncertainty of the firm.

An important tactic that experts state needs to happen is the retention of star lawyers who will make Dewey & LeBoeuf attractive to potential suitors if the firm were to be acquired.

The company, based out of New York City, cited declining sales and profitability due to high-end fashion being hit hard by the state of the economy.

The company is seeking offers to buy all or parts of its business according to court documents.

Betsey Johnson is listing assets at $21.3 million and total liabilities worth $15.4 million at the end of 2011, also according to court documents.

The company has over 65 Betsey Johnson retail stores worldwide. They also sell merchandise in departments stores such as Nordstrom and Macy’s.

Last year, Betsey Johnson LLC recorded sales of $60 million.

Since 2007, sales have dropped 20% and profitability has more than halved according to court documents.

Betsey Johnson LLC, named after its founder, had gotten its start in 1978. The fashion label is known for their youthful designs with rock-n-roll and hippie themes.

According to Reuters, the company had enlisted Morpheus Capital Investors in early 2012 to secure new equity investors or to sell the business. Over 20 potential buyers and investors were contacted but Morpheus was unable to secure a deal.

The company has requested a Debtor-In-Possession financing of $2.5 million in order to fund the bankruptcy operations, according to the court filings.

U.S. Economic Growth Slows

Given the state of the economic growth, high end retail institutions have been hit with fewer consumers willing shell out for premium-priced garbs.

According to The New York Times, U.S. economic growth slowed from 3% in the last quarter of 2011 to 2.2% in the first quarter of 2012.

One reason why Betsey Johnson LLC could not find a suitor for investment or sale may be due to the fact that U.S. business investments have declined. Alongside slow investment rates, economists warned that consumer spending cannot be sustained without hiring and wage increases.

Experts have stated that business remain very cautious in new investments in the current U.S. economy.

However, The Federal Reserve’s growth projections for 2012 were revised, showing 2.4 percent to 2.9 percent rather than the previously estimated 2.2 percent to 2.7 percent growth. Ben Bernanke, Chairman of the Federal Reserve, stated that the Fed would stay on their course of keeping interest rates low through 2014.

The Retail Fail

Betsey Johnson doesn’t stand alone in the category of companies struggling in the retail industry.

Recently H&R Block announced that it will be closing 200 underperforming stores and are set to lay off over 300 employees as it realigns to serve the ever-growing digital tax filing markets.

According to Reuters, Jackson-Hewitt, H&R Block’s main competitor filed for pre-packaged bankruptcy protection last year citing the disparity in retail profits from electronic competitors like TurboTax.

As the economy slows, and job growth mirrors the slow economic status, consumers take notice. Experts suggest we may see even more retailers preparing to file for bankruptcy in the near future.