Student Loan Debt Consolidation Programs – How to Obtain Them
December 8th, 2009 by adminFor prospective student borrowers who are seriously contemplating on getting a student loan debt consolidation, these programs can be obtained either from a brick and mortar office of a lending company or from the numerous loan websites on the internet.
Student borrowers must be wise decision makers so far as finding and securing for themselves programs on student loan refinancing is concerned. This would only mean that the borrowers should not only understand the benefits and advantage that such programs offer, but likewise all the possible disadvantages that they might experience out these programs.
Definitely, forming a proper decision on obtaining the right student loan debt consolidation is a difficult task that you can make. Therefore, if you do feel that you are incapable of deciding which program is best for you, employing a professional loan consultant or adviser is the best thing to do. It is a must that you get only a legitimate and established lending adviser to ensure that you are receiving the best and most sound loan advice. Only a professional will know which type of program fits your loan requirements.
Indeed, when it comes to enjoying better and more convenient mode of repayment, college loan consolidation programs and schemes are a way to go. The consolidation and merging of loans helps students deal with multiple debts in a less stressful way. Not only are students given a single monthly due date, but the rate of interest of their new loan is much lower, which consequently means lower due every month.
Student Loan Bankruptcy
October 29th, 2009 by adminStudent Loans Aren?t Discharged by Bankruptcy
That?s the bad news. Due to bankruptcy reforms in 1998 and 2005, it?s almost impossible for the average person to discharge federal or private student loans through bankruptcy. You may be able to get help with your payments through a bankruptcy filing, but there are better options for repaying your student loans.
The Student Loan Bankruptcy Exception
As with all rules there is one exception: you can discharge a student loan in bankruptcy due to undue hardship. Undue hardship is defined as the permanent physical inability to work. You must prove in bankruptcy court that:
You?re physically unable to work You?re likely to be unable to work for most of the loan term You?ve made a good faith effort to repay the debt Paying it would prevent you, your spouse, and your dependents from maintaining a ?minimal? standard of living.
If you believe you qualify under these guidelines, see an experienced bankruptcy lawyer for help filing an adversary proceeding as part of your bankruptcy case.
How Bankruptcy Can Help with Student Loans
Although your student loan can?t be discharged in bankruptcy, a bankruptcy court may be able to ease an overwhelming debt burden. Some courts may discharge a portion of your student loans, but this is rare and varies by court.
In most cases, the judge will incorporate your student loans into your debt repayment plan under Chapter 13 bankruptcy. Any balance remaining after the payment plan ends will still be due, but your other debts should be paid off by then.
What to Do if You?re Heading Toward Bankruptcy
If your total debts have reached an unsustainable level and you feel you must file for bankruptcy, don?t simply stop paying your student loans. Not only are student loans not dischargeable in bankruptcy, but also the federal government has the right to assess stiff penalties, seize tax refunds and other government assistance money, and garnish your wages.
Lenders want to help you avoid default. Contact them for help applying for a deferral, forbearance, or extended repayment plan before the situation gets worse than it already is.
Solutions for Student Loans You Don?t Owe
If a lender is demanding payment for a student loan you don?t think you owe, it?s best to resolve the situation before you wind up in bankruptcy court.
The most typical situation is a miscalculation of the actual loan balance, especially if the loan has changed lenders multiple times. If you think the lender is requesting more than you owe or hasn?t properly credited payments, write to them with your evidence. If the issue is not resolved, then a court can intervene to determine the amount you actually owe. A bankruptcy judge may also do this as part of a bankruptcy proceeding.
Your debt may be cancelled if a few situations apply:
Situation 1: Your school closed before you completed your education and you couldn?t complete it elsewhere. You don?t qualify if you voluntarily withdrew before the school closed. You may be entitled to a loan reduction if you voluntarily withdrew and the school improperly withheld any remaining student loan funds.
Situation 2: Your school or another party signed the promissory note in your name without your approval or the school falsely certified you as eligible for a student loan when you were not.
Situation 3: You were forced to withdraw due to a disability that developed while you were in school, or that certifiably worsened after you accepted the loan.
For all three situations, it?s best to contact the lender or the federal student loan program for assistance in resolving your unowed debts. Although a bankruptcy court can sort it out for you, other solutions are simpler and better for your financial future.
Student Loan Cancellation Programs
Several federal and state agencies offer programs to help you cancel or reduce all or a portion of your student loan debt without filing for bankruptcy. Most programs involve teaching, nursing, or military service.
In most cases, bankruptcy won?t erase your student loans. Although bankruptcy is still a viable solution for desperate financial situations, it?s best for your future financial well being to avoid it. Contact your lenders as soon as a problem develops in order to avoid worse financial repercussions.
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