As the Presidential campaign hits the stretch run, both candidates are talking about their plans to help students and parents deal with the ever-increasing student loan problems. In August, the candidates expressed their opinions: http://www.huffingtonpost.com/2012/08/22/mitt-romney-obama-student-loan-debt_n_1820062.html

No matter who wins the election, student loan debt is increasing faster than all other household debt right now. And, college costs are rising too. Students have some options to help with their burden. Some of the options for students that have hardships are based on their income in the future. See: http://studentaid.ed.gov/repay-loans/understand/plans for a list of different repayment options. Or students can try to defer the loan repayment for a period of time.

Bankruptcy offers some help on student loans. Student loans cannot be discharged (eliminated) in either chapter 7 or Chapter 13 bankruptcy. This does not mean that student loans are not “included” in bankruptcy. A Chapter 7 stops collection activities such as lawsuits and garnishment, even if only for the time that the case is going on (about 6 months). A Chapter 13 bankruptcy also stops garnishment, a nd can allow a student to repay what he or she can afford over the term of the plan, 3 to 5 years. A Chapter 13 does not, however, eliminate the interest that accrues during that time and, it does not eliminate the rest of the debt.

If you are having problems paying your student loans, it is best to call an attorney who deals with these situations regularly.

Contact us at the Law Offices of Daniel J. Winter if you want to review your student loan situation if you live in Northern Illinois or Southern Wisconsin. We have offices in Chicago, Oak Lawn, Skokie, Waukegan and Milwaukee to serve you.

Daniel J. Winter
Law Offices of Daniel J. Winter
53 W. Jackson Boulevard
Suite 725
Chicago, IL 60604
Djw@DWinterLaw.com
BankruptcyLawChicago.com
312-789-9999