A CNBC article reporting on the Student Loan forgiveness program said, “Americans collectively owe nearly $1.3 trillion in student debt loans, more than any other type of consumer debt except mortgages.” As a student loan lawyer in Lake County, we at The Burns Law Firm P.C. know this better than anyone.
Student debt has ballooned because of rising tuition and the necessity for higher education in the modern workplace. It’s also a result of behavior—people are often more reckless with student loans because they think of it as a good debt. And while it can be, it’s worth doing your homework before diving in and getting a loan.
If things go badly, student debt workouts can be very difficult to do on your own. You’ll need a student loan lawyer in Lake County.
There are a few things about student loan debt that make it so difficult to stop the phone calls and satisfy your creditors.
For privately owned student debt, there’s often not much you can do to modify your existing loan.
Unless you qualify to have the loan discharged, your first options are deferment, forbearance, or refinance. None of these are great options, but they will lower or eliminate your payments temporarily. The downside is that interest will continue to accrue, increasing the amount you owe when you resume payments.
Student loans are exempt from being discharged in a chapter 7 bankruptcy.
Keep in mind, despite popular belief, it is not impossible to get student loans discharged in bankruptcy, but it is difficult. In fact, a bankruptcy study found that almost 40 percent of debtors who apply for a hardship discharge get one. So while it is possible, it’s a difficult debt to discharge even when filing a chapter 7. However, a student loan lawyer in Lake County may find a way to make your loans more manageable.
Federal loan collectors have serious collection powers.
According to Reuters, federal student loan collectors “can garnish wages, grab federal tax refunds, and take a portion of government benefits, all without taking a borrower to court.” Going up against the federal government is not something to be done alone. You’ll need an advocate, so hire a student loan lawyer in Lake County.
The Burns Law Firm P.C. deals with all sorts of loan workouts, from mortgage and credit to student and car loans. Contact us today if you need a student loan lawyer in Lake County for a case evaluation.[/column]