WORK WITH YOUR STUDENT LOANS, AND THEY WILL WORK WITH YOU
If you are being harrassed, sued or garnished by the Department of Education or one of its credit collectors, please see a student loan defense attorney immediately. An experienced attorney can help you stop every phone call and get you onto a path of repayment that doesn't hurt your bank account.
WHAT CAN I DO IF I'M ALREADY IN DEFAULT?
Believe it or not, you can do a lot, and you should do it right away. Default is the worst case scenario for student loan debtors, but you can rehabilitate your loan. Rehabilitation can only be done once, so do it once, do it right, and never do it again. Rehabilitation terms can be very good, if you know what you're doing. For example, you could rehabilitate your loan for as little as $5 per month. Then, once you're loan is rehabilitated, new options open up to you, such as deferment, forbearance, and income-based repayment plans.
INCOME-BASED REPAYMENT WILL SOON BE OPEN TO OLDER BORROWERS: President Obama's income-based repayment plan was originally available to newer borrowers who had crushing debt amounts. Beginning December 31st, 2015, this program will expand to cover older borrowers too. If you have large student loan debts, you should look into the income-based repayment plan. The plan forgives your student loan balance after successful payments over 20-25 years. The best part is that it is "income-based", which means if you suddenly are unemployed, your monthly payment could be as low as $0 per month, and it still counts towards the 20-25 year plan! Better still, if you work for the government or qualifying non-profit, your loans will be wiped out after 10 years of payments.
STUDENTS LOANS IN BANKRUPTCY: Unfortunately, student loans are generally not dischargeable in bankruptcy, unless there are very special circumstances. This means that the vast majority of debtors will still owe their student loans after bankruptcy, and those who qualify for a discharge must take other steps in court to successfully discharge this debt.
Every situation is different, and you should consult with a lawyer to further discuss your student loan debt options.
Contact Andersen Law to schedule a free consultation with Angela Andersen, our Eugene student loan rehabilitation attorney. We can answer your questions and explain your options for dealing with student loan default, creditor harrassment, and other financial issues. We also charge low flat rates for our individual bankruptcy clients.