Jacksonville Student Loan Debt Lawyer
Get Help With Your Student Loans From Florida Debt Relief Attorneys
Student loan debt is one of the leading sources of personal debt in the United States. Nearly 45 million Americans, or one-sixth of the country’s adult population, have student loan debt, according to a 2018 report from the Federal Reserve Bank of New York. As of the end of 2018, the total amount of student debt in the country reached $1.47 trillion–higher than credit card bills or auto loans. The dangers posed by the massive student loan debt across the country are even more strongly pronounced among people who did not finish college or who earned only a certificate. These individuals represent two-thirds of borrowers who ultimately default on their student loans. Simply put, student loans are a big problem in this country, and they are not going away any time soon.
If you are dealing with massive student loan debt, you are far from alone. Thankfully, you do have options. Call a seasoned Jacksonville student loan debt lawyer at Albaugh Law Firm to discuss your finances and options for debt relief. We are ready to craft a solution to your debt troubles and work with you to chart a path to a brighter financial future.
Options for Student Loan Relief
Debtors who are behind on their student loan payments or who are in danger of defaulting have options for student debt relief. Speak with a seasoned Florida debt relief attorney at Albaugh Law Firm to learn about your options and evaluate which form of debt relief would be best for you. Some of the options for student loan debt relief include:
Federal Loan Deferment and Modification
Lenders who issue federal loans are required by law to offer deferment options to borrowers who can demonstrate hardship. Deferment allows borrowers a period of relief without payment so that they can get their finances in order and start repayment again after a few months.
Additionally, lenders are required to give borrowers the chance to negotiate their payment plans at least once per year. Borrowers may be able to extend their student loan repayment period, which could significantly reduce monthly payments. Some plans can extend loan terms from ten years to as many as 25 years, providing much-needed relief every month. Some plans fluctuate according to the borrower’s gross annual income, providing flexible relief depending on the borrower’s circumstances and increasing over time as the borrower’s income increases. Talk to your attorney about the available plans and how to negotiate with your borrower for a more feasible arrangement.
Student Loan Forgiveness
Federal student loans also have the benefit of forgiveness under certain circumstances. The federal government may be willing to forgive some or all of your student loans, depending on your career path, your circumstances, and the nature of the school you attended. Some of the more common types of loan forgiveness include:
- Forgiveness for teachers
- Forgiveness for public service employees
- Discharge of loans for students whose schools closed during or shortly after the student attended
- Disability discharge
Most people are unsure as to whether student loans can be discharged in bankruptcy. Historically, they were basically exempt: Under the Federal Bankruptcy Code, a debtor must show they would suffer “undue hardship” if they are forced to continue paying their loan. Undue hardship was not defined in the Code, so courts applied a variety of legal tests, typically requiring that a borrower was disabled and unable to work or that they literally could not survive if they kept paying.
Thankfully, in recent years, bankruptcy courts have begun to relax that standard. Now, depending upon the jurisdiction, you may be able to discharge your student loan without a showing of inability to work, by showing that you are suffering hardship. One study found that as many as half of the bankruptcy filers who included student debt were able to get at least some relief. Talk to your bankruptcy attorney about your financial circumstances to determine whether bankruptcy is appropriate and whether you might qualify for student loan debt discharge.
Find Relief From Student Debt With Our Jacksonville Student Loan Debt Lawyers
If you are struggling with student loan payments and considering whether to file for bankruptcy, or if you want to explore your other options for consumer debt relief, call the Jacksonville debt relief attorneys at Albaugh Law Firm for seasoned legal help. We are dedicated to providing individual, tailored, and effective service to our Florida clients seeking financial freedom and security. Call the Jacksonville debt relief attorneys at Albaugh Law Firm today at 904-471-3434.