Fayetteville Student Loan Attorneys
Student Loan Lawyers in Fayetteville, AR Relieving Your Student Loan Debt
Battling with federal student loan debt? You’re not alone! Many people feel overwhelmed by their student loan payments. However, there’s good news – We can help you find solutions to your repayment options and work together towards ending the cycle of student loans.
As we delve into the finer details of student loan repayment, let us talk about forbearance, deferment and income-driven plans. Life can often take unexpected turns. When you took out your student loans or first applied for financial assistance, you probably had certain expectations of where you would be after graduation – but this may not be true today!
The great news is that you have nine options for federal student loan repayment plans available to adjust your debt and recalculate it appropriately.
Armed with years of combined legal expertise, our team will guide you through the complex financial circumstances that life can often throw at us. We’ll expertly assess your financial situation to identify what benefits you may be eligible for.
Can You Discharge Student Loans in Bankruptcy?
IOne of the most widespread inquiries from student loan borrowers is if they can discharge their debt in bankruptcy. The short answer? Unfortunately, no – it’s incredibly rare for a borrower to have their student loans discharged through this route. Student Loans has now become the second-highest consumer debt group, behind mortgages and ahead of credit card debts; however unlike other kinds of consumer debts such as mortgage or credit card debt, discharging them via bankruptcy isn’t an available option typically.
The reason student loans cannot be included in a bankruptcy is likely because people might borrow money for school, get a degree, and then file for bankruptcy to not have to pay the money back.
If you have student loans, you might be able to get rid of them by filing a lawsuit. You will need to file an adversary proceeding with the bankruptcy court. To be successful at discharging your student loans, you must prove that it would be an “undue hardship” to have to repay them according to the U.S. Bankruptcy Code.
So, it is possible to get your student loans discharged.
In the Eighth Circuit, which contains Arkansas, courts examine a debtor’s individual situation (utilizing what is known as the totality of circumstances test) to decide if exempting student loans from discharge would be an undue hardship for them. This assessment includes three elements: (1) the debtor’s past, present, and reasonably reliable future financial resources; (2) their reasonable and necessary living expenses; plus (3) any other relevant facts or conditions.
How Can I Discharge My Student Debt?
If you’re considering bankruptcy as an option for dealing with student loans, there are a couple of things to take into account. In Chapter 7, they will likely not get discharged; meaning that your obligation to pay them remains the same. On the other hand, in Chapter 13 it is possible to structure payments so that most goes towards your student loan debt while paying only minimal amounts on other unsecured debts such as credit card or medical bills. Additionally, filing under this chapter may allow you up to five extra years before needing payment on those loans again.
If you cannot pay your student loans, you might be able to do one of these things:
- Revised Pay As You Earn Repayment Plan (REPAYE Plan)
- Pay As You Earn Repayment Plan (PAYE Plan)
- Income-Based Repayment Plan (IBR Plan)
- Income-Contingent Repayment Plan (ICR Plan)
Sometimes you can get a payment of $0.00 per month in an income-based repayment program.
What is the Student Loan Management Process Like?
Ongoing Requirements
Every year, federal assistance programs demand that you “recertify” your income. You will be asked to complete a recertification form that we can assist with over the phone, via video chat, or in person.
Student Loan Management Programs
We can help you see if you can get help to pay for your student loans. We will look at all of your records, money, and earnings. Each plan has different rules about helping people pay back their loans. Some people might have part of their loan forgiven or be able to combine all their loans into one payment.
The analysis will give our experienced staff the information they need to help you stay financially healthy and make sure your student loans are not too much of a burden.
Student Loan Repayment Options
Viewing the outstanding balance of your federal student loans can be daunting, and loan repayment may appear to be a distant dream. Yet by planning ahead and investing in yourself now, you can pay off those loans quickly. With proper budgeting and smart money management strategies, you will soon have that remaining balance paid off – it’s closer than you think!
We can look at your income, monthly payments, and the federal loans you have. We can also look at the federal repayment plans and see if your loans are eligible for any federal student loan repayment programs. There are many different loan repayment options (public service loan forgiveness, income-contingent repayment plan, income-driven repayment plan, extended repayment plan, income-based repayment plan, graduated repayment plan, income-sensitive repayment plan, pay as you earn, etc.)
There are four types of repayment plans for student loans:
Affordable Monthly Payments
Rather than basing your monthly payment amount on how much debt you owe, utilizing an income-driven repayment plan can ensure that it’s always a reasonable sum based on what you make and the size of your family. An income-based repayment plan, extended repayment plan, pay-as-you earn plan or even an income contingent option could be available to work with. Making this switch means more money in your pocket every month!
Loan Forgiveness
The federal government may forgive some or all of your student loans. You may not be eligible if you have private loans.
Default Resolution
You can put all of your defaulted student loans into one new federal student loan. This will help you to get rid of any defaults that you have.
Consolidate Your Payment
All of your federal student loans can be put into one loan. You would only have to make one monthly payment to one loan servicer. If you need help, hire a Fayetteville student loan attorney today.
When Should I Contact a Fayetteville Student Loan Lawyer?
To start your debt relief journey, a knowledgeable Fayetteville attorney can provide an assessment of your financial situation. After the evaluation is complete, they will be able to advise you on what options are available based on the Federal Government and the Department of Education’s qualification requirements.
You are under no obligation to continue with us after your initial assessment. If you’d like a copy of the analysis and our contact details, please don’t hesitate to ask. Our team is here for you now or anytime in the future should you choose to wait before making a decision.
It is important to be responsible when you have student debt. This means you still have a good life and do not worry about money. There may be other options available to you. Call us today at 501.891.6000 to get the legal help you deserve.
