How to Get Out of Student Loan Debt

 In Student Loan Debt

They say you can’t put a price on a good education; but if you ask the millions of Americans carrying unbearable student loan debts, the answer is quite different. With a near $1 trillion in outstanding student loan debt, the price for a good education could cost you financial hardship after graduation.

Don’t Allow Your Student Loans to Go Into Default

A student loan is considered in default after 270 consecutive days of non-payment. Because education costs are higher than ever, while wages have not even come close to keeping up, there are a number of graduates faced with mountains of debt and few job prospects to help them pay down that debt. However, allowing your student loans to go into default can affect your present and future in many negative ways:

  • The student loan provider could garnish your wages
  • The student loan provider could take your tax returns
  • Hurts your credit
  • Could hurt your ability to obtain credit or get a home loan in the future

Unfortunately, all too many graduates are facing the harsh reality of being unable to repay their debt obligations. On the bright side, there is help!

Learn About Student Loan Debt Relief Programs

Because student loan services live on the interest payments and penalty fees of student loan repayment, they don’t want you to know about these student loan debt relief programs. Rather than work with you for loan repayment, they often prefer to keep you tied down under large monthly payments.

Lower Your Monthly Student Loan Payments

The economy is not able to support the high costs of higher education, and student loan borrowers are suffering the consequences. Recent legislation has made it easier than ever to have a loan payment reduced to even as little as $1 per month, regardless of the total amount owed on the loan, due to financial circumstances. The federal government offers a wide range of repayment options for borrowers; some of these plans are income-based, and some are not.

Lowering your student loan payments should be a priority for anyone suffering in today’s slow economy. It is a great way to free up your finances, ease your debt burden, and enable you to worry less about your future. Contact us today to begin your risk-free discussion of all of your options.

Does Student Loan Forgiveness Really Exist?

Student loan forgiveness results in all remaining student loan debt being wiped out, so it is a great option for those who do qualify. Not everyone will qualify for student loan forgiveness, but for those that do – they should take advantage of this option. Though there are some exceptions, student loan forgiveness is mainly available for those who have decided to pursue careers in:

  • Education
  • Public Service
  • Non Profits

If your career falls within one of these fields, you have a likely chance of being eligible for student loan forgiveness. Relieving the stress of student loans gives persons in these fields the peace of mind to do their jobs well. Contact us today to learn more about your eligibility for student loan forgiveness.

Other Ways to Get Student Loan Debt Eliminated

There are ways to get your student loan debt discharged, but they are not easy. Bankruptcy is not an option; student loans are a non-dischargeable debt and remain after your other debts are discharged in bankruptcy. The fact that there are so many repayment options for different income levels means that it is extremely unlikely your student loans will be discharged due to any financial reasons. So how are student loans discharged? There are several ways:

1. School Closure

This is a special circumstance in which your education was somehow interfered with due to an unplanned school closure. In these circumstances you will be able to receive a discharge of the loans you took out to pay for the education you could not receive due to the shutdown. In order to obtain this discharge you cannot have transferred those credits elsewhere.

2. Disability

Student loans can be discharged due to disability, although proving your disability is notoriously difficult. The standards for proving disability are rigid and yet somehow not well-defined, meaning that the evaluators have a lot of leeway to make a judgment as to whether your disability is of a type that qualifies for discharge. Proving the type of “total and permanent” disability that the law requires is often extremely challenging, therefore, but it can be done, and if you qualify it is your best option.

3. False Certification

In circumstances where the institution you attended was not properly certified or accredited, you may be entitled to a discharge of the loans taken out to attend that school. These are special circumstances and you will likely need the help of a lawyer to evaluate whether you would qualify.

These and other specific circumstances can result in a discharge of your student loan debt, but it is not the most common method. Those seeking discharge due to financial hardship would be best suited to trying one of the income-based repayment plans. Contact us today to talk about your options.

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