Category: Student Loans

Six Statutory Student Loan Discharge Options

What Are The Six Statutory Student Loan Discharge Options That Every Student Loan Borrower Should Know About?

Generally, student loans never go away but there are six exceptions to that rule:

1. School closure

If the school that you attended closed while you were attending school, you can ask for forgiveness of your student loan debt.

2. False certification

The school that you attended must certify that you are eligible for student loans. If they falsely certify your eligibility, your loan may be forgiven if the school:Six Statutory Student Loan Discharge Options

• Falsely certifies that you’re a high school graduate able to benefit from the program;

• That you are able to meet minimum state job requirements after completing the program;

• The school forges or alters your student loan note or endorsement on the check ;

• You’re the victim of identity theft or other fraud.

3. Unpaid tuition refund

What happens if you never attended the program and withdrew? The tuition should have been refunded, but if the school keeps the money and then comes after you for repayment, you can ask for forgiveness for the amount of money that should have been refunded.

4. Disability discharge

If you’ve become permanently and totally disabled you can seek an administrative discharge of your Federally granted student loans. This is one of the most common ways for student loans to be discharged.

5. Public service discharge

The public service loan forgiveness program (PSLF) is a program for Federal student loan borrowers who work for non-profit tax exempt 501(c)(3) organizations or are employed by Federal government, state government, local government or serve full time for AmeriCorp or Peace Corp.

If you worked for a qualified employer and made a 120 payments, any money you owe on your Federal loans after 10 years of eligible payments and employment are forgiven. If you meet all the criteria the earliest that any remaining debt can be forgiven will October of 2017 since the program didn’t start until October 1, 2007.

6. 911 victims

Certain relatives of 911 2011 victims may be eligible for student loan debt forgiveness.

What’s right for you?

Not every loan type qualifies for each of these options and, quite frankly, these options only apply to a very narrow group of borrowers and co-signers. If your doctors told you that you are unable to work or you worked for a non-profit organization or municipality, you may be eligible for a student loan discharge.

Remember, none of these options apply to private student loans.

You can learn more about your rights to administrative student loan discharge by contacting Tampa Bay student loan attorney, Nancy Cavey, who can help you with your student loan options regardless of where you live in the United States.

student loan repayment options private

What You Need To Know About Your Repayment Options For Private Student Loans

Financing a college education today can be tough, and it’s not uncommon for consumers to have both federal student loans and private student loans. Unfortunately, income-based repayment plans, student loan forgiveness programs and discharge options are generally only available to those with federal student loans. But, what can you do if you have private student loans and you’re having difficulty making payments?

The problem with private student loans

The world of private student loans is, quite frankly, a train wreck. The reality is that private student loans are hard to pay off because of high interest rates and interest and inflexible payments. When student loan debtors fall behind, there’s student loan repayment options privategenerally no program or resource to help them re-establish their footing. Getting behind in private student loan debt can be disastrous.

What are the options?

The options available for private student loans are dependent, in large measure, on who the lender might be. Let’s look at what Sallie Mae, Wells Fargo and Discover offer:

Sallie Mae

Sallie Mae services both federal student loans and offers private loans though a company called Navient. They do offer unique options to private loan borrowers including:

1. Graduated Repayment Period (GRP). This program, which became available as of July 1, 2013 provides a 6 month grace period after graduation.

In this program, you only have to pay accrued interest for the first 12 months of repayment. However, this can lead to higher payments later and a more expensive total loan amount. It does help you get on your feet after graduation which can be a benefit if you’re struggling to find work.

2. 12 Month Rate Reduction. This program offers lower interest rates, which can be as low as 1 percent and may sometimes include a modification of the loan term. However, qualified borrowers must first make 3 consecutive on-time monthly payments at the reduced rate.

Sallie Mae may extend the reduction period to some borrowers depending on your employment status and other financial indicators.

3. Reduced monthly payments and extended repayment schedules. Sallie Mae has offered reduced monthly payments and extended repayments in the past. Sallie Mae seems to be slightly more flexible and would rather rehabilitate private student loan borrowers and help you recover from default than sue you.

Wells Fargo Loans

Wells Fargo has a forbearance policy for private student loan borrowers particularly, if they’re interning, in residency or fellowship, or even enrolled less than half-time as a student. Wells Fargo also offers extended grace periods for those who qualify and short term payment relief of up to 6 months.

Discover Student Loans

Discover offers in-school deferment for students who are enrolled in at least half-time status. They’ll also allow deferment for those who are active in military duty up to 3 years, in public service for certain organizations up to 3 years and in a health profession residency program for up to 5 years.

What you should do if you’re having trouble paying off your private student loan

My first word of advice is to contact your private student loan lender and see how they may be able to help you with a longer grace period, deferment or repayment options, including reduced interest rates. If they aren’t cooperative, then it’s time to contact Student Loan lawyer Nancy Cavey who can help you sort through your options. Contact her today at 727-828-9955.

repayment period student loan borrower

What Every Student Loan Borrower Needs To Know About When Their Repayment Officially Begins

There are many types of student loans and, unfortunately, each have their own grace period and, depending on the type of loans, you probably will have different dates in which your payment officially begins. Some loans have a grace period – a time after graduation or separation from school when payments are not required.

Remember, that if you have an unsubsidized loan, simple interest has been accruing since disbursement. That interest will be “capitalized,” or added to the loan balance, when you enter a payment.

You should think about your ability to pay, type of work you will do and the amount of your private student loan debt.

I’ve found that you should attempt to pay off your loans in the following order:

1. Private Loans;
2. Graduate PLUS Loans;
3. Stafford Loans; and
4. Perkins Loans and Institutional Loans.

While implementing this plan of attack, you should be entering into IBR and/or PAYE programs that make the payment manageable for your federal student loans while you concentrate on paying off your private student loans.

Need Help With Your Repayment Of Your Student Loans?

Contact us today to discuss your student loan options with repayment. Help is only a phone call away and you may be able to qualify for a lowered monthly fee or even sometimes, no fee at all!

NBC News Article About For Profit Schools

As taken from the article: Technical and occupational schools such as Lincoln Tech, University of Phoenix and ITT Tech generally target students who might not have the time or resources to attend a traditional college, but many state attorneys general have recently raised questions about where the schools’ priorities stand.

What are your thoughts after watching the video? Share below!

The schools under investigation include:
Apollo (University of Phoenix)
Career Educational Corporation
Corinthian College
Education Management Corp
ITT Tech
Universal Tech

Let us know if you have any questions regarding the above school and your student loan debt. Call today! 727-828-9955

Costs of enrollment student loan debt

College Prestige Vs. The Cost Of Enrollment What Every Student Loan Borrower Needs To Know

Is your child faced with the option of a college that gives little financial aid but is perceived to be prestigious? Have they been admitted or attending to a less prestigious college that offers scholarships and won’t require little, if any, borrowing?

What is the real issue is deciding what college to attend!

Sarah Turner, Professor of Economics and Education at the University of Virginia, pointed out, “it’s not just a sticker price and net costs.” The real issue is “how likely is it that you’ll get into a medical school or law school or Costs of enrollment student loan debthave some other opportunities if you choose a more prestigious college?”

So, the debate between paying full tuition at a leading institution or accepting a merit scholarship from some place less prestigious is a tough conversation you’ll have to have! That discussion has become more difficult, based on our difficult economic times.

So, what’s the answer to this emotional decision?

Alan Krueger, an economist at Princeton University, and Stacy Berg Dale, senior researcher at the Mathematica Policy Research, found that equally smart students had about the same earnings whether or not they went to a top-tier college. The big difference, however, came from “minority and low-income students who went to top-tier colleges.” They did better later on.

Professor Katz suggested that the parents shouldn’t think about paying more for a non-elite private university as an investment, but “as a form of consumption.”

The book you need to get before you make this decision

Ultimately, it comes down to an economic decision and here at Student Loan Law Relief Center, we believe that our book, “Student Loans – What They Didn’t Tell You!” provides a great guide to help parents and students make the right decision about student loans, so they can make an informed decision that’s right for everyone in the family.

Request your copy of the book here today! 

Article by Paul Sullivan The New York Times Saturday, April 20, 2013 Business Day Section

private student loan debt attorney

It’s Time To Talk About Why Getting A Private Student Loan Is One Of The Worse Mistakes You Can Make

Financing an undergraduate education can be difficult and, sometimes, students and their families will turn to private student loans.

Unfortunately, most private student loans do not have the options that are available for federal student loans, such as deferment or forbearance that can provide you with a temporary relief in repaying your student loans.

If you’re in default of a federal student loan, you have the ability to rehabilitate the loan and, depending on your financial circumstances, enter into Income-Based Repayment plans. These Income-Based Repayment plans also have forgiveness options which just aren’t available with private student loans.

Common options to apply for private student loans

Some student loan lenders, such as Sallie Mae, may offer undergraduates the choice of three repayment options each of which is, in my opinion, unacceptable. These include:

1. Deferred repayment;
2. Fixed repayment; and
3. Interest repayment.

Deferred payment

Once the bank loans you the money, interest starts accumulating immediately, even though you’re in school. If you are eligible for a federal subsidized loan, the government pays the interest while you’re attending school.

Fixed repayment plans

The fixed repayment plan is just that – it’s fixed! It’s very difficult to renegotiate the amount of your payment, interest rate or the term once you’re in a fixed repayment plan. So, if you’re experiencing financial difficulties, it may be impossible to renegotiate the loan.

Interest repayment only

Interest repayment is just that. Because interest isn’t immediately due on your student loan, this program offers you the ability to pay interest only on your loan while you’re attending school or, if you can’t even make the interest payments, the total amount of the loan will be due and interest will be tacked onto interest.

Responsible borrowing for your college education

Before you think about taking out private student loans, you should exhaust all of your federal student loan remedies and then explore grants, scholarships and state student loans. You may have to work part-time while you’re attending school to finance the balance of your education. That, quite frankly, is preferable to taking out private student loans.

What you should do today!

You can learn what’s right for you by contacting Tampa Bay student loan attorney, Nancy Cavey, who can help you with your student loan issues regardless of where you live in the United States. She can meet with you and discuss student loan modification and other debt relief strategies that will make the repayment of your college debt and help you regain a stable financial footing. Contact her today at 727-828-9955.

difference between private and federal student loans

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

Federal student loans

Federal student loans are either guaranteed or issued by the Federal Department of Education. You may have heard of Stafford Loans, Direct Loan, PLUS Loans, Perkin Loans. They’re all federal student loans.

Most federal student loans are eligible for repayment based on Time-Based or Income-Based Repayment plans. You’re also eligible for forbearance or deferment if you run into financial difficulty which will allow you to temporarily stop making payments.

There are even special forgiveness programs for those who work in certain occupations such as teachers, police officers, child care workers or those who work for certain employers, such as governmental entities or non-profits. You might also be eligible for a discharge of your federal student loans if you’re disabled.

Private student loans

A world of private student loans is a world unto itself. Private loans can have a variable fixed interest and the bank controls the terms of your loans. There are rarely any options for forbearance, deferment, cancellation, discharge or affordable Income-Based Repayment plans.

How can I tell the difference?

Look up your loans in the National Student Loan Data System and run a credit report. Private loans don’t show up on the National Student Loan Data Sheet and should show up on the credit report.

What should I do if I’m having problems paying my loans?

Regardless of whether you’re having problems paying a private or federal student loan, it’s time to talk with a Student Loan lawyer like Nancy Cavey who can explain to you your options. Call today before it is too late for your student loans!

pslf student loan attorney

Do I Want To Stay In The Standard 10 Year Repayment Plan If I’m In The Public Service Loan Program?

What a great question!

To be eligible for Public Service Loan Forgiveness (PSLF), you must make 120 of the right kind of student loan payments, with the right kind of loan, while working in the right kind of job. The 120 payments don’t have to be consecutive.

What is the right kind of payment?

The right kind of payment or Income-Based Repayment (IBR), Income Contingent Repayment (ICR) or the Standard 10 Year Repayment Plan.

Why you don’t want to stay in the Standard 10 Year Repayment Plan if you are in PSLF

If you are in the Standard 10 Year Repayment Plan, you won’t have any debt left to forgive in 10 years because you will have paid off the loan!

Most service loan forgiveness programs are really intended for people who have high debt to income ratios. If that’s you, you probably qualify for ICR or IBR.

As a general rule, your payment will be higher in a Standard 10 Year Repayment Plan than in an ICR or IBR program. You should look closely at the payment options and determine whether an Income-Based Repayment plan is right for you.

Remember, if you pay under IBR and ICR plans, or even a portion of your 120 eligible PSLF payments, in these plans you will still have debt to forgive after the 120 payments.

What should I do next?

It’s time for a student loan check-up to determine whether there are alternative Income-Based Repayment plans that are right for you and will lower your payment. Better yet, you can also determine your eligibility for Public Service Loan Forgiveness.

Contact Public Service Loan Forgiveness lawyer Nancy Cavey today at 727-828-9955.

Smiling Graduate Holding up Diploma

Four Things That Every Recent College Graduate Should Know About Their Student Loans

Congratulations on getting your college diploma! You’ve worked hard for your degree and I know that you and your family are proud of your accomplishments.

We want you to be a financial success and soon you’ll have to begin the repayment of your loans. Here are 4 tips that every recent college graduate should know about their student loans:

1. Know your student loans.

It’s important that you keep track of the lender balance and repayment status for each of your loans. Visit so that you can determine the total amount of your loans, lenders and repayment status of your Smiling Graduate Holding up Diplomafederal student loans.

If you find that some of your loans aren’t listed, they’re probably private non-federal loans. You should also go on Sally Mae site and do a similar check. Don’t forget to order a consumer copy of your credit report. If that doesn’t work, try to find the paperwork you signed or contact your school if you can’t locate the records. Now you know enough information to keep track of your loans.

What do you need to do next?

2. Know your grace period.

Different student loans have different grace periods. A grace period is how long you can wait after leaving school before you have to make your first payment. For Perkins loans, the trace period is 9 months but for a Stafford and most other loans, it’s 6 months.

The grace period for private student loans also varies. You should consult your paperwork or, better yet, contact your lender to find out. You should start making a chart of each of your loans documenting the lender, balance, repayment status and grace periods.

What should I do next?

3. Pick the repayment option.

When your federal loans become due, your loan payment is automatically based on a standard 10-year repayment plan. For most people, that’s just too much money to handle.

There are both Time Based and Income Based student loan repayment programs.

I suggest an Income Based Repayment Plan that allows you to cap your monthly payments at a reasonable percentage of income. Better yet, there’s also forgiveness options that are available to you. Many Income Based Repayment plans forgive any remaining debt after 25 years of payments.

For example, if you work for the state, city or local municipality or school board or in the non-profit sector, you may be eligible for the Public Service Loan Forgiveness Program. PSLF makes forgiveness available after 10 years of payments.

If you have a private loan, you really have no options. You’re generally are in a fixed monthly payment for the length of the loan.

However, it’s important that you pick the right repayment option for your federal loans to lower those payments as much as possible so that you can stay current on your private student loans.

4. Stay out of trouble.

Ignoring your student loans has serious consequences that can and will last a lifetime. Not paying your loans can lead to delinquency and even default! If you can’t handle your student loan debt or are delinquent or in default, it’s time for you to call Student Loan Lawyer Nancy Cavey who can help you learn your options.

If you have falling behind on your student loan payments or cannot make the payments at all, please give us a call to discuss your repayment options. We may be able to reduce your monthly payment today! 727-828-9955


why hire a student loan attorney

Why You Should Have A Student Loan Attorney Help You With Your Student Loan Problems

There are plenty of ways you can handle your student loans. You can contact a student loan counselor, do it yourself or contact a student loan attorney. Making the right choice can mean the difference in getting you back on the right track or being buried in student loan debt.

Student loan counselors

Many student loan counselors will try to move you into consolidation loan. They’ll make no guarantees and simply helping you complete the documents necessary to consolidate loans through the United States Department of Education in return for a high fee.

However, Consolidation isn’t always the right answer and student loan counselors just don’t help people get out of debt. Not many student loan counselors will help borrowers with Income Based Repayment Plans or with any of the Administrative Discharge Options.

A student loan counselor can’t help you if your lender violates any of the federal or state consumer protection laws. It is not uncommon for student loan collectors to harass you and your family and you’ll be without the legal protection that you need.

Do it yourself!

The federal regulations for Income Based Repayment Plans, Student Loan Discharges and Forgiveness Programs. If you’ve got lots of time on your hands and are short on money, that may be an option.

Student Loan Attorneys

If you want a road map to handle your student loan debt, you’re going to have to invest in a student loan attorney. Only a student loan attorney has a full range of solutions available and can analyze your personal situation to provide you with a road map and steps to managing your student loan debt.

For example, let’s say you’re in default and being harassed by student loan collectors. Only an attorney who understands student loan law, as well as the Fair Debt Collection Practice Act, can help you out of this mess.

The student loan attorney can help you deal with Administrative Wage Garnishments or seizures of your income tax refund or intercepts of your income tax refunds.

There are many solutions that a student loan attorney can provide you to handle default and identifying and placing you in an Income Based Repayment Program, Discharge Program or Forgiveness Program that’s right for you. Better yet, only an attorney that understands the Fair Debt Collection Practice Act can pursue a law suit on your behalf against the student loan collector who violates your federal or state rights. It’s not uncommon for your student loan debt to be addressed in combination with a Fair Debt Collection Practice law suit resulting in a win-win situation for you.

Choosing the right Student Loan Attorney for you

There are lots of options for solving your student loan problems. As a student loan attorney, who specializes in student loan law and collection violations, I know that the most complete solution is to hire a student loan attorney.

You can learn more about student loan debt by ordering my book, “What They Didn’t Tell You About Your Student Loans.” Give me a call today! A student loan attorney can help you get on the right financial track!