Achieving Financial Freedom Through Bankruptcy
While you’re studying, your school may offer financial aid in the form of loans, where you will borrow a certain amount of money that you should pay back with interest. Before even checking if you can be one of many student loan borrowers, it’s important that you fully understand the terms and conditions as well as the other people you’ll be dealing with later. This is why it’s so beneficial to be working with an Auburn CA, student loan debt attorney.
Having said that, student loan debt has become a very common problem among graduates lately. Being delinquent or defaulting on student loans may result in federal benefits being withheld, wage garnishment, and other consequences.
So if you’re looking to get out of student loans as quickly as possible, it’s best to seek the assistance of an experienced Auburn CA student loan debt attorney from Bottomline Lawyers. If that sounds good to you, then drop by our law firm today!
Why do I need an Auburn CA Student Loan Debt Attorney?
Although you probably won’t feel the need to work with a bankruptcy lawyer when you have just graduated, it helps to be proactive especially when you want to clear your student loan debt quickly. When looking for an Auburn CA student loan debt attorney to you, it’s crucial to have someone who possesses these qualities:
- Has the requisite experience and skills to handle any concerns related to Bankruptcy and other law practices
- Gives legal assistance from the perspective of fathers, mothers, daughters, sons, and experienced businessmen.
- Focuses on the well-being and overall welfare of the clients rather than just the specific practice area
- Is committed to knowing exactly what you need to accomplish
Give our bankruptcy law office a call immediately to receive a FREE CONSULTATION from a seasoned Auburn CA student loan debt attorney!
What are Student Loans?
Student loans are a form of financial assistance given in order for students to afford higher education in the United States. Apart from exceptions, student loans should be repaid as this financial aid is different from grants and scholarships which are often not repaid.
Student loans play a major role in the higher education of United States citizens. Close to 20 million individuals go to college every year in the United States alone, with around 60% of them borrowing money annually to help pay for costs. This is why the need for Auburn CA student loan debt attorney services has significantly increased.
There are two main types of student loans:
- Federal student loans are where the United States Department of Education is your lender. Also known as the William D. Ford Federal Direct Loan Program, the loans can be direct subsidized loans, direct unsubsidized loans, direct PLUS loans, or direct consolidation loans. An Auburn CA debt collection attorney will better explain what these are and which makes the most sense for you.
- Private student loans, on the other hand, are ones offered by finance companies or banks and not by a government agency. Unlike Federal student loans, private loans usually offer less favorable terms, are more expensive, and can only be used if borrowers have reached the borrowing limit for federal loans. They also cannot be repaid through income-based plans or bankruptcy.
How do I get a student loan?
To get a federal student loan, you first need to accomplish and submit a Free Application for Federal Student Aid (FAFSA) form. Your technical school or college will come up and send you a financial aid offer based on the FAFSA form you completed. The school will also let you know whether you can accept part of the loan or all of it.
Prior to receiving your loan funds, you must do these:
- Complete an entrance counseling that sees to it that you understand your obligation for repayment
- Agree to and sign a Master Promissory note that contains the terms of the loan
The process of taking out a private loan will depend on which bank or financial institution you will be borrowing from. As previously mentioned, this type of student loan typically has less flexible payment terms, more penalties, and higher monthly fees. For this reason, getting a private loan isn’t recommended unless you have no other choice.
Call your education department’s financial assistance office for more additional information on the federal student loans process. It’s also good to consult with an Auburn CA student loan debt attorney even before you borrow money.
How do I repay my student loans?
Federal student loans are usually paid off using a standard repayment method with the least possible interest. You will be given 10 years at most to pay everything back for a minimum amount of $50 every month.
While paying a fixed monthly rate could be tough for fresh graduates, you’re able to choose between six alternative repayment plans if you think you can’t keep up with the standard plan. These include Graduated Repayment, Extended Repayment, Income-Based Repayment, Pay As You Earn Repayment, Income-contingent Repayment, and Income-sensitive Repayment.
As for the repayment of private student loans, you’ll be required to start paying them off once the grace period given ends. In most cases, however, you’ll start to make monthly payments as soon as you graduate with the amount depending on how much you owe and the interest rate.
Talk to a skilled Auburn CA student loan debt attorney to know which repayment plan suits you long-term and to discover ways you can be granted student loan forgiveness.
Can Bankruptcy Get Rid of Student Loans?
Ask any Auburn CA student loan debt attorney about bankruptcy, and you’ll most likely be given the same answer. Yes, filing for bankruptcy can erase your student loans – but it’s very difficult!
To get rid of your student loan debt through Bankruptcy, you need to convince the court that paying the loans “will impose an undue hardship on you and your dependents”. Part of this process is proving that you can’t maintain even a minimal standard of living while repaying the loans, your situation is likely to continue for a large part of the repayment period, and you made good faith efforts to repay the loans.
Note that this only applies to federal student loans, as private student loans cannot be discharged by filing bankruptcy.
Work with an Auburn CA student loan debt attorney to see if Bankruptcy filing is a viable option given your situation.
Contact our Auburn Bankruptcy Attorney To Learn More!
Whether it’s you or someone you love who is desperately trying to achieve student loan debt relief and remain debt-free, it would surely be great to have somebody giving honest legal advice on the situation. With an Auburn CA student loan debt attorney guiding you during every step, resolving issues like creditors harassment and delinquent/defaulted loans is possible.