Higher education can be costly. Many times, for a bright future, students take a student loan to pursue their dream of higher education. However, the financial future of these students (graduates, post-graduates as well as doctoral fellows) is in jeopardy due to the crippling student loan. Most of the times, due to bad financial conditions, people have the option of filing for bankruptcy. Since student loan is not discharged in bankruptcy, not only is it a point of concern for the students but also the nation as a whole.
According to the Los Angeles based law firm Recovery Law Group, the outstanding student loan dues amount to more than a trillion dollars, with nearly 12% in default. It has been consistently on the rise since the past 15 years. The student loan crisis has its effects on not just the loan borrowers but also other sectors including real estate and automobile industry. Despite filing for bankruptcy, students require assistance to take care of their student loan problem. It is therefore essential to consult and trust experienced bankruptcy lawyers who can assist student loan borrowers in ways to tackle the debt.
Having a detailed analysis of your student loan case can help in establishing your eligibility for income-sensitive repayment, amalgamation, and loan forgiveness and cancellation if you have a good credit rating or are a recent graduate. A good bankruptcy lawyer can help take care of bureaucratic problems associated with. federal loan servicing. In case, you were paying your student loan but due to a bad financial condition have fallen back on payments, lawyers can help in finding out options for reduced monthly payments under federal law. Loan prioritization and repayment management are some of the methods through which lawyers help with loan repayment, apart from overseeing completion of forms and application and being your representative with lenders.
With bankruptcy lawyers at your side, you can be provided with a detailed analysis of your options in case you are defaulting on your payments. They can also help take care of abusive debt collectors and collection agencies who have been pestering you for dues, as well as prevent any wage garnishment from taking place. Explore all available solutions when you consult a bankruptcy lawyer.