Student Loan Repayment and Forgiveness

January 14, 2015

If you are struggling to make your monthly student loan payments or have defaulted on your loans, then contact the experienced student loan attorneys at JRQ & Associates to lower your payments, stop collection action, or even discharge your loans.

 

Your options for reducing and eliminating student loan debt depend on a complex range of factors, including personal circumstances, the type of lender/loan, and the stage of collection proceedings.  A general overview of some options are listed below; we will be updating with many other student loan options and topics, such as repayment plans, default options, collection actions, and student loan defense, over the coming months.  However, you should call to discuss any possible student loan debt options that are available to you.  

 

Continue reading to learn more about options you may have for reducing or eliminating your student loan debt. These requirements have been simplified and do not include application requirements or an in-depth analysis of the eligibility requirements.   For help choosing and applying for the best option, call an experienced student loan lawyer at JRQ & Associates today. 

 

Complete or Partial Student Loan Discharge

 

If you meet certain criteria, you could have part or all of your student loan debt completely wiped out.  In most cases, you must file an application with supporting evidence.

 

 Some reasons for discharge include:

 

  • Filing a bankruptcy and making a showing of undue hardship (follow the link to read more about this standard)

  • A total and permanent disability that is expected to, or has lasted for 5 years

  • Attendance in a school that has closed

  • An unpaid refund from a school

  • The death of the borrower

  • Work in certain occupations, such as public service or the military

 

Deferment

 

A deferment is a type of special approval from your student loan holder allowing you to stop making payments, and for interest to stop accruing during this time.  It can last up to 3 years, but you must re-apply each year.  In order to receive a deferment, you must meet specific conditions that vary with the type of loan.

 

Some common reasons for deferment include:

 

  • Full time enrollment in school

  • Temporary economic hardship

  • Rehabilitation for a disability

  • Active duty in the military

  • Receiving unemployment or other public benefits

 

Forbearance

 

Loan forbearance is similar to a deferment in that you are excused from making student loan payments, but interest will continue to accrue on the loan.  There are two types of forbearance: mandatory and discretionary.  A forbearance is mandatory where your debt exceeds 20% of your income (and other conditions are met), and if you are employed in certain teaching and national service positions.  A discretionary forbearance can be requested from your lender if you are suffering from an illness or financial hardship.

 

Consolidation

 

If you are paying multiple student loans, you can consolidate – or combine – them into a single loan, with one monthly payment.  This can reduce the overall interest rate on your student loan debt, and can also be used to get out of default.  There are certain consequences if you decide to combine a private loan with a federal loan, so it is important to make sure you contact an experienced student loan attorney at JRQ & Associates before making any decision to consolidate your student loan debt.

 

Avoid damaging your credit and accruing heavy interest charges; take charge of your student loan debt with the help of a student loan lawyer at JRQ & Associates.  Let us help you succeed with the best plan to deal with your student loan debt.  

 

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The photographs on the homepage slideshow are attributed and used under the following:  Chicago River © flickr user Mindfrieze under licence CC BY-SA 2.0

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