If you have overwhelming student loan debt, there are some options to try to get the student loan debt under control. I wrote about some of them in my 2012 blog post, “Having Problems Paying Student Loans- You’re not Alone!”.
Just recently, President Obama, by executive order, extended one of the options for students, the “Pay as You Earn” program. This program, until now, was limited to students who took out loans before 2007; Starting in December of 2015, many more recent borrowers will qualify. Under the program, when the loans are in repayment, the payment cannot be more than 10% of their income. And, if you work in the public sector, new loans can now be forgiven after 20 years, instead of 25 years.
Most reports say that 5 million more student loan borrowers will qualify for the expanded program. But, it does not apply to private student loans, and only applies to the poorest borrowers. See the CNN report.
Student loan debt is a problem that has been increasing to epidemic proportions lately. And, with the job market only slowly recovering, many students haven’t been able to find jobs. This creates a big problem for many newly graduated students. If you just graduated, and can’t find a job, you’ll want to try to get your loans deferred. Or, after a longer default, you may want to explore income-contingent repayment plans. You do have options, but you need to take action.
We can help you with your student loan options. We can help you stop garnishments on your paycheck, block the government from taking your tax refund, stop collection lawsuits, and investigate repayment options, and getting you out of default. We can also investigate Chapter 13 or Chapter 7 Bankruptcy as a way to help you. If you are struggling with student loans, or other debt, call us to discuss your situation.
Daniel J. Winter
BankruptcyLawChicago.com
Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois, and Milwaukee, Wisconsin
312-789-9999
