chapter 13 bankruptcy student loans

Chapter 13 Bankruptcy And Your Student Loans

While it’s possible to discharge student loans in bankruptcy, it’s not very easy. Generally, unless you can show undo hardship, student loans are not dischargeable in bankruptcy.

Chapter 13 bankruptcy can provide relief to the student loan debtor but there are some big problems with a Chapter 13 bankruptcy.

Chapter 13 bankruptcy plans will normally last 3 to 5 years and at the end of the Chapter 13 plan, you may end up with a higher student loan balance after bankruptcy, if you haven’t made payments during your Chapter 13 bankruptcy.

Practical tips

One practical tip in a Chapter 13 bankruptcy is to pay your student loans with the money you saved during the Chapter 13 plan. It’s all about budget but sticking to the budget can be tough.

There are better solutions!

Alternative solutions to Chapter 13 bankruptcy

There is no doubt that a Chapter 13 bankruptcy can provide some relief for student loan debt. It can stop collection and garnishment activity but, for most, student loans are paid on a proata basis during the Chapter 13 bankruptcy. That proata sum is usually not enough to keep your student loan balance from growing during the Chapter 13.
So, what’s the answer? Income based repayment plans!

Income contingent or income based repayment plans

There are two income adjusted programs available for Federal student loans. Income contingent repayment (ICR) and income based repayment IBR programs are both intended to provide you with an affordable monthly payment based on your income and family size. Under both plans any remaining loan balance is forgiven after 25 years and under both programs your monthly payment amounts will be adjusted annually based on changes in your income.

While there are key differences, income contingent or income based repayment plans are an excellent way to address your student loan problems even if you have to file for bankruptcy.

Finding counsel

It is crucial that you find an attorney who specializes not only in bankruptcy but student loan law so you know your options. Those options include filing for bankruptcy or determining whether an income contingent or income based repayment plan will provide you with relief.

Don’t make an uninformed decision that can impact your financial future! CALL TO ACTION

How to deal with your student loan debt today

According to The Institute for College Access and Success (TICAS) project on student debt, the average student loan borrower graduates with $26,600 in debt! One in 10 graduates accumulates more than $40,000 in debt. There is almost $1.2 trillion dollars in college student loan debt in the United States.

Regardless of the amount, student loan debt can limit your financial future. Are you stuck with an unaffordable monthly payment?

How to deal with your student loan debt

There are many options for Federal student loan borrowers, including income contingent or income based repayment plans that can help reduce your monthly payment.

Both plans provide you with an affordable monthly payment based on your income and family size. Monthly payment amounts can be adjusted annually based on changes in your income and any remaining loan balances are forgiven after 25 years.

There are key differences in these programs and you should consult a student loan attorney in determining what payment plan or consolidation options provide you with a fresh start. You can learn your repayment options today!

federal loan vs private loan

What’s The Difference Between A Private And A Federal Loan?

A commercial private loan is obtained through a private institution like a bank and rates and terms can vary based on the lender. Private loans are never eligible for federal relief programs such as Income-Based federal loan vs private loanRepayment (IBR), Income-Contingent Repayment (ICR), Pay As You Earn (PAYE), and Public Service Loan Forgiveness (PSLF). Unfortunately, if you get behind in the payment of your private student loans you don’t have the ability to defer, temporarily suspend, request a forbearance, or temporarily postponement or reduce your payments because of financial hardship.

If you default on your private loans your bank will refer your loan to a collection agency who will begin harassing you with phone calls. If you are behind on your private student loan or are being sued, contact private student loan attorney, Nancy Cavey, to learn about your options.

SHOULD I TAKE OUT A PRIVATE OR FEDERAL STUDENT LOAN?

Private student loans are to be avoided at all costs!

Private student loans are never eligible for federal relief programs such as:

• Income-Based Repayment;
• Income-Contingent Repayment; and
• Public Service Loan Forgiveness.

Worse yet, they are not eligible for deferments if you re-enroll in school, are unemployed or face economic hardship.

You’re not even eligible for forbearance which is a temporary postponement or reduction of payments because of financial hardship.

If you’re behind on your private student loans, or being sued for default contact Florida private student loan attorney, Nancy Cavey, to learn more about your defaulted private student loan. Give us a call today to go over your options for repaying your student loans.

fafsa student loan attorney

Should I Fill Out A Free Application For Federal Student Aid FAFSA ?

Absolutely! You should explore the availability of financial aid from all sources so that you can minimize your student loan debt. It is better to exhaust all financial aid options before turning to loans.fafsa student loan attorney

Each year beginning on January 1st, a new FAFSA application becomes available. Submitting a new FAFSA application is required to secure access to federal student aid (including federal grants). Many colleges use the FAFSA information to determine eligibility for their different grant and loan programs. (If you don’t fill out the FAFSA application, you lose the opportunity to receive this assistance.)

The federal deadline for submission of the application is generally at the end of June but make sure you check the website of any college you’re thinking about attending so that you can file it timely.

Don’t forget you have to submit your FAFSA yearly. Grants and scholarships can help make college affordable so that you don’t have to take out a student loan.

income-based student loan repayment plans

What Every Student Loan Borrower Must Know About Income-Driven Repayment Plans If They Want To Reduce Their Student Loan Payment

Income-driven repayment plans like Income-Based Repayment (IBR), Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) can provide you with a lower monthly payment than the standard 10-year income-based student loan repayment plansrepayment option that many student loan borrowers select.

What’s even better is that these programs make it possible for you to cancel any balance of your loan after 20 to 25 years depending on which income-driven repayment plan you select. You can learn more about income-driven repayment plans by ordering our free student loan book.

How do I qualify for income-based student loan repayments?

The Income-Based Repayment plan calculates your monthly payment based on your income rather than the amount you owe. Generally, if you’re in a standard 10-year repayment plan, you repay your debt completely in 10 years. The total amount you owe is divided into 120 equal payments. You pay the same amount each month for 120 months or 10 years.

However, with IBR your monthly payment will be less if you have a lower income and, of course, if your income rises your payment will rise.

You’ll qualify for income-based repayment plan if the annual amount due on all of your eligible loans under a standard 10-year repayment plan exceeds 15% of your “discretionary income.”

What’s discretionary income?

Discretionary income is calculated by taking your adjusted gross income and subtract 150% of the poverty level for your family size.

Pull out your latest income tax filing and look at your adjusted gross income. Subtract 150% of the federal poverty level for your family size.

If you earn less than you owe in federal student loans, you generally will be eligible for IBR.

You can learn whether you can qualify for IBR and obtain an estimate of your monthly payments by going to FinAid.org.  If you would like to talk to us about your student loan debt with any questions you may have, please give us a call.

Are Federal Student Loans Safer Than Private Student Loans?

Yes!

According to Lauren Asher, President of the Institute for College Access and Success (TICAS), Federal student loans are the “safest type of loans to take while financing education.” See source

The average student loan borrower will graduate with $26,600 in debt and student loan debt can be a burden you carry for years. However, Federal student loans are, according to Ms. Asher, “subject to income based payback, fixed interest rates and take 9 months to default on.”

Ms. Asher explained that private loans have the right to claim default on a loan after missing just a single payment. As she points out, “default is a one way ticket to bad credit.” She even noted that “any ding in credit rating can affect [a borrower] more now than ever” and can make it difficult for you to get a job.

Having Trouble with Your Federal Student Loan Debt?

If you’re having difficulty paying back your Federal student loan debt, contact student loan attorney, Nancy Cavey, today to learn about the exciting income based repayment based options that will make your student loan debt manageable and insure you a fresh financial future. Contact her today at 727-828-9955.

Your student loan debt can push back when and whether you can buy a home, start a family and destroy your future. Give us a call today to start the process to reduce your student loan debt to a manageable monthly fee.

Consolidation Of Your Student Loans May Be The Answer

Consolidation of your student loans may be the answer to your student loan debt. However, consolidating the wrong type of loan with other student loans can eliminate certain income adjustment repayment plans.

What loans shouldn’t be consolidated?

You should never consolidate private loans with Federal loans or you can lose the rights associated with your Federal loans. It’s also not a good idea to consolidate Perkins loans and Parent PLUS loans with other Federal loans because the Parent PLUS loans will taint the entire consolidation loan process.

A wrong move can limit your options and cost you thousands of dollars over the life of your loan.

Before you decide to consolidate your student loans, contact Tampa Bay area student loan attorney, Nancy Cavey, who can help you make the right decision regardless of where you live in the United States. Call today for a free consultation at 727-828-9955.

Are you Struggling with your Private Student Loan Debt?

Many student loan borrowers who are unemployed or underemployed face extreme difficulty in making payments on their private student loans.

The Federal Deposit Insurance Corporation, Federal Reserve Board and Office of Comptroller of the Currency have issued a statement suggesting that “prudent workout arrangements are in the long term best interest of both the financial institution and the borrower.”  This can include loan workout or modification programs or other options if you are struggling with repayment.  However, remember not every private student loan lender has these private student loan attorney floridaprograms.

If you’re behind on your private student loan debt and are struggling to make ends meet, contact Florida private student loan lawyer, Nancy Cavey, who can explain the basic options available to you, eligibility requirements for loan workouts or modifications and the process for requesting a modification.

Need a Florida Student Loan Attorney for Your Private Student Loan Debt?

Nancy is here to help with your student loan debt in Florida, all across the state. Call her today at 727-828-9955. We offer you the insight to see what program works best for your private student loan problems.

What you can do today if you can’t afford your student loan payments because you can’t find a job

Things are tough for recent college graduates and the economy in Florida has taken a dive. The job you thought would be there at a great wage just hasn’t materialized. That can make paying off your student loans difficult.

If you can’t afford the minimum student loan payment owed each month, you do have options. Student loan lawyer, Nancy Cavey, offers a comprehensive and personalized analysis of your student loan portfolio to determine options for reducing your monthly payments. This can include providing you with advice for re-payment options based on your income.

You don’t have to stay locked in the 10 year fixed payment plan. There are many exciting options available to Federal student loan holders that will allow you to make student loan payments based on your annual income.

What you can do about your student loan debt?

You can contact Nancy today by simply filling out the questionnaire and faxing it to 727-289-7035. Nancy will review your answers and contact you so you get the help you need today.

payback student loan debt

Are You Constantly Avoiding Calls From Student Loan Debt Collectors?

In today’s economy, many college graduates simply don’t have the money to pay back their student loan is. The economy has taken a nose dive and the job that you thought would be there for you when you graduated has just evaporated. This makes paying off those student loans a difficult task. If you are in a default or collections, you are most likely receiving harassing phone calls from student loan debt collectors. payback student loan debt

What you can do about your student loan debt?

If you are one of the many student loan debtors who have hundreds or even thousands of dollars in private, state or federal loan debt, you need help. You don’t have to face the burden of student loan debt and the harassing phone calls by yourself.

Student loan attorney, Nancy Cavey, can help you with your federal student loan debt.

Depending on the type of loans you have, there are a number of options including deferment, settlement, payment renegotiation, consolidation or even rehabilitation. Contact Nancy Cavey to learn more about how she can help you with a personalized solution at 727-828-9955.

You probably have more than one student loan with multiple payments. With Nancy’s help you have a change at arranging an affordable payment that will let you move on to the “good life.”

Student Loans and The Full Nest Syndrome

According to the Pew Research Center analysis of U.S. Census Bureau data, in 2012 36% of the Millennial generation, ages 18 to 31 were living in their parents’ home. The study had concluded that the rise in young adults living in their parents’ home is driven by a number of factors including declining employment, a raise in college enrollment and declining marriage.

However, unemployed Millennials are much more likely than employed Millennials to be living with their parents. In fact, the numbers are staggering. Forty five percent of those Millennials who are unemployed are living with their parents versus 29% of those who are employed.

At the My Student Loan Attorney , we know that having difficulty finding a job or a job that pays a lower wage makes it difficult, if not impossible, to pay your student loans. As a result, in an effort to make ends meet, many 18 to 31 year olds have gone back to live with their parents.

We’re sure that you would rather have your independence and freedom back rather than live with your past. There is a way to do that! Income based repayment plans are available to student loan holders who can’t make a standard fixed 10 year payment.

If you are looking for a way to move out contact student loan lawyer, Nancy L. Cavey, who can help you get back on your feet!

This came from the Tampa Bay Times, Monday, August 12, 2013

Richard Fry, Pew Research Center. The full report is at “A Rising Share of young Adults Live in Their Parents’ Home” at tinyurl.com/tbtimes-kidsathome.