Student loans are a necessary evil to many in today’s business and work environment. Incurring debt to be able to go to school for the first time or to continue your education to qualify for job position requirements or a chance at a better paying job or promotion seems a no-brainer especially when even the President and Congress have made it easier to get loans in these recent times. Studies show there is a growing trend of student loan default amongst borrowers of all ages due to the inability of many to pay back these loans which usually carry high interest rates. It seems that the main problem is not in getting these easily accessible student loans, but it lies in repaying them.
Many people, with government or private student loan payments and with the inability to pay fail to utilize the many and widely available mechanisms to them to postpone payment. However, forbearance programs and deferments tend to only delay the inevitable. Repayment of loans begins shortly after the period of study ends. Many seek to consolidate their loans, many times complicating matters by having to pay one large monthly sum. Yet others have no way of paying.
Because there is little or no possibility to pay these student loans after housing expenses, the light bill, food, and other necessities are paid, many people stop paying student loans. The possible result is collection, judgment, and post-collection of the amounts due by all legal means including garnishment of wages, accounts, and tax refunds.
When lawsuits for non-payment are filed or collection happens many people look for a legitimate way of eliminating the debt. What many people do not know is that the student loan law strictly scrutinizes loan repayment and student loan debt is generally non-dischargeable in bankruptcy. Garnishments continue even after a bankruptcy case has been filed.
The student loan secret is that there are payment vehicles mandated by federal law which help those with student loans adjust their payments to their incoming income. Although a servicer of a loan must advise a defaulting student of these available programs before collection, many don’t and students are unaware of the problems associated with defaulting on these student loans. Many in these income programs do not know that they must re-register every year with the programs. What is also interesting is that most attorneys are not versed in student loan law, the process, and the available remedies.
Before you default, please consider these payment programs and start calling your servicers early. Please also consider a student loan attorney before you sign any agreements. If you need to determine whether these programs may still help you pay your student loans, and how this debt fits in with your other debts, please make an appointment with our office for a free consultation at (305)820-0334. For more details, please also check out our website at www.ahernandezlaw.com.