If you are like most Chicagoland students, you needed Federal student loans to help pay for your college education. At the time, the plan was that you’d graduate and get a job that allowed you to pay off your loans. Maybe college graduation came and went or perhaps you needed to leave the program and get a job. Regardless of your situation, when the bills started arriving, you realized you couldn’t afford the payments.
Many individuals who make the payments automatically assigned by the servicer, have nothing left for the down payment on a mortgage or a car. Thankfully, there are options that can help you handle overwhelming student loan debt. We can analyze your case and show you which alternatives can help you the most.
Your first student loan payment is due six months from when you leave school, whether you graduate or leave the program. If you don’t talk with your student loan servicer at least 45 days before the first payment is due, you are on the standard repayment plan. It takes the sum of your student loans and interest, then divides it into 120 installments (10 years). To give you an idea of what this looks like, if your loans are $60,000, payments will be about $515 a month, depending on interest rates.
If you are unemployed, underemployed or have significant other debt, such as medical bills, this type of payment may not be realistic.
Would reducing your monthly student loan payments help? We can get you moved to one of the repayment plans that could lower the amount you have to pay each month, giving you some much needed breathing room. Student loan repayment options include:
Each plan has pros and cons. The one that’s right for you depends on your situation and goals. Contact us today and take back control of your finances.
There are repayment assistance programs that you could qualify for, depending on your career, such as teachers, nurses, doctors, lawyers and members of the military.
If you took out loans for several different semesters of school, chances are, they each have a different interest rate. This means you may be making multiple monthly student loan payments. A direct consolidation loan combines all of your federal educational loans into one payment.
There are 20 different types of student loans that you can consolidate, including nursing student loans, parent loans for undergraduate students and Direct PLUS loans.
If you couldn’t make the required monthly installments, you may have stopped making payments altogether. You have one opportunity to get back on track through rehabilitation. We can work with the servicer and negotiate on your behalf. Once the loans are out of default, we can consolidate your loans if needed and get you into a repayment plan that can relieve some of the financial pressure you are experiencing and allow you to take back control of your finances.
Despite what you may have heard, there are certain circumstances in which bankruptcy can wipe out student loan debt. The requirements are very strict, but if you qualify, we can help you file for Chapter 7 bankruptcy and include your federal student loans. This can help you reclaim financial stability and move forward with the rest of your life.
The attorneys at Benjamin Brand LLP can help manage your student loan debt, avoid foreclosure and determine if you qualify for bankruptcy.
Bankruptcy is a last resort. There may be alternatives that can help you deal with the financial burden. Call us at 312.853.3100 for more information about our areas of expertise and to find out if bankruptcy is the best option for you.