Fort Lauderdale Lawyers Handling Student Loan Matters

Student Loan

These days, student loans are a necessary evil for almost anyone trying to pursue higher education. Student loans often end up being higher than a home mortgage. Between inflated tuition rates and a tough job market, recent grads are increasingly struggling to make payments.

Fortunately, there are options. Student loans are generally more flexible than other types of loans, and payments can be tailored to accommodate financial struggles.

What If I Can't Afford My Student Loans?

So what can you do if you can't make your payments? There's good news and bad news. The bad news is that you probably won't be able to discharge (eliminate) student loans through bankruptcy. Under the Bankruptcy Code, you would have to prove "undue hardship" to get rid of student debt. This standard is so high that it is virtually unattainable. Bottom line — it is extremely difficult to discharge student debt through bankruptcy.

Bankruptcy can, however, stop student loan creditors from harassing you. And if you pursue Chapter 13 bankruptcy, you can place your student loans into forbearance during the pendency of the proceedings.

Affordable Payment Plans

The good news is that you have options. Numerous payment plans are available for those facing financial difficulties. For example, you may be able to take advantage of:

  • Income-based repayment plan to lower your monthly payments
  • "Pay as you earn" plan, a new program that offers another way to make your payments affordable
  • Deferment or forbearance (postponement of payments) due to a change in circumstances, such as unemployment
  • Consolidation to lower your interest rate
What If I've Defaulted On My Student Loans?

Defaulting on student loans carries heavy consequences. It will negatively impact your credit. You may also face garnishment of your wages and tax refunds.

Fortunately, there are two ways to get out of default. First, you can consolidate your debt to attain a lower interest rate. Second, you can rehabilitate your loan — that is, make lower payments for nine to 10 months.

Contact Our Coral Springs Area Attorneys For Student Debt Issues

To learn more, contact our Fort Lauderdale, Florida, attorneys handling student loan matters at the Bankruptcy Law Firm of Clare Casas. Call us at 954-327-5700 or contact us online. Our lawyers offer free initial consultations.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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