What Are Your Options When Facing Overwhelming Student Loan Debt?
Education is a treasured opportunity, but it often comes at a high price. Student loan debt is one of the most contentious financial issues in the United States today, and many Americans find themselves facing overwhelming student loan debt for decades after graduation. Luckily, there are several options for relieving your student debt, depending on your situation.
When you contact the Law Offices of Danny K. Agai, an experienced attorney can help you explore a multitude of debt relief options. Bankruptcy lawyer Danny Agai is genuine in his efforts to help clients out of difficult situations, and he can help you develop a strong financial plan for both your present and your future. From his office in Valley Village, Mr. Agai serves clients throughout the Los Angeles area.
Repayment Plans To Relieve Student Loan Debt
If you have a low or unstable income and a high student loan balance, you may be eligible for an income-based repayment plan. Those with federal direct loans can pursue an Income Contingent Repayment Plan (ICR), which calculates the payment amount based on your income. Under this plan, your monthly payment will be the lesser of these options:
- 20% of your discretionary income
- The amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income
After 25 years, if all requirements are met, the government will forgive any leftover balances.
Individuals with subsidized or unsubsidized Federal Stafford Loans, FEEL PLUS Loans, and FEEL Consolidation Loans may pursue an Income Sensitive Repayment Plan (ISR) that is calculated based on your annual income, family size, and total loans. For these loans, you can also pursue an Income-Based Repayment Plan (IBR), which requires payments of 10% of your discretionary income if you’re a new borrower or 15% if you’re not a new borrower. The government will forgive the remaining loan balance after 20 years.
Similar alternatives are a Pay As You Earn repayment plan (PAYE) and Revised Pay As You Earn repayment plan (REPAYE), which issue monthly payments of 10% of your discretionary income and loan forgiveness after 20 years of payments (25 years for REPAYE). Mr. Agai can help you decide which repayment plan is best for your student debt situation if repayment plans are your best option in the first place.
Can Student Loan Debt Be Canceled?
In some situations, you may qualify for student loan forgiveness (cancellation). If your loans are forgiven, canceled, or discharged, you do not have to pay them off. Depending on your case, you may cancel part of the loan and not necessarily the entire loan.
You may be able to qualify for student loan cancellation if:
- You attended or were enrolled in a school that closed while you were there, before you started classes, or within a certain time frame afterward
- Your school refused to refund you the money that it owed you because you didn’t attend the school or withdrew
- Your school didn’t make sure that you were qualified to attend the program (“false certification”)
- You work in certain occupations after graduation, like teaching or some public service jobs
- You’re unable to work because of a total and permanent disability that’s expected to continue for 5 or more years or result in your death
Unfortunately, some loan servicers make it as difficult as possible for borrowers to take advantage of – or even to learn about – these options. That’s one reason why it’s important to get straightforward advice from a trusted attorney.
Other Relief Options And Deferment
There are many other alternatives to obtain relief, and the Law Offices of Danny K. Agai can help you explore your options. For example, you may be eligible for a deferment, which excuses you from making student loan payments for a set amount of time (without accruing interest) due to a specific life event like returning to school, unemployment or economic hardship.
You may instead choose to get a loan forbearance with the help of your attorney, which will give you permission to stop making payments for a certain time due to poor health or other unforeseen personal issues. Some debtors may alternatively choose to pursue debt consolidation to combine their federal student loans into a single loan with one monthly payment to reduce interest rates. Mr. Agai is especially experienced in this area and can offer you knowledgeable guidance on the process.
Unfortunately, student loans are almost never dischargeable in bankruptcy. However, using bankruptcy to relieve other debt obligations may allow you to free up the necessary income to make student loan repayments. This is one option to explore with an attorney.
Free Consultations Available – Reach Out Today
To discuss options for addressing your student loans and other debts, contact the Law Offices of Danny K. Agai for a free initial consultation. You can contact the firm online or call 818-867-3697. Se habla español.
This firm is a debt relief agency. Attorney Danny Agai helps people file for relief under the Bankruptcy Code.