Believe it or not, it is possible to eliminate your student loans in a bankruptcy. However, as we've discussed before in previous posts, it takes a showing of "undue hardship" to discharge student loans, and that is usually a very difficult process. It's the rarest of exceptions, not the rule, for bankruptcy to eliminate student loans.
So if bankruptcy cannot help you with your student loans, what can you do about them?
Once you understand that your student loans are here to stay, then you can start evaluating your options for repaying them. And yes, you do have options!
Depending upon your particular type of student loan (Stafford, FFEL, PLUS, etc.), you have several options available to you for repayment of your loans, including:
- Standard repayment;
- Extended repayment;
- Graduated repayment;
- Income-Based repayment; and
- Income-Contingent repayment.
Over the next few weeks, we'll be looking at each of these repayment plans in detail, starting with standard repayment. Until then, check out this link from the Federal Student Aid website. It gives an overview of the different types of repayment plans available as well as links to other articles and information about each repayment plan.
Restructuring student loans can be a complicated process with a lot of detailed rules and specific procedures. If you or someone you know is interested in knowing more about their particular solutions for their student loans , consider meeting with a professional student loan auditor so that you can get an accurate understanding of your financial situation and learn more about your options for addressing your student loans.
Lodestone Legal Group practices in the areas of student loan restructuring, bankruptcy, debt negotiation and settlement,financial counseling, residential and commercial real estate, estate planning (wills and trusts),small business and corporate law, and proudly serves the cities of Franklin, Brentwood, Spring Hill, Thompsons Station, Fairview, Nolensville, Nashville, Madison, Antioch, Donelson, Hermitage, Old Hickory, Bellevue, Murfreesboro, Smyrna, La Vergne, and Cheatham, Davidson, Dickson, Hickman, Marshall, Maury. Rutherford, and Williamson counties.
Lodestone Legal Group practices in the areas of student loan restructuring, bankruptcy, debt negotiation and settlement,financial counseling, residential and commercial real estate, estate planning (wills and trusts),small business and corporate law, and proudly serves the cities of Franklin, Brentwood, Spring Hill, Thompsons Station, Fairview, Nolensville, Nashville, Madison, Antioch, Donelson, Hermitage, Old Hickory, Bellevue, Murfreesboro, Smyrna, La Vergne, and Cheatham, Davidson, Dickson, Hickman, Marshall, Maury. Rutherford, and Williamson counties.
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