23rd Nov 2015

rsz_19948709194_f2094b54c0_zAre you struggling to keep up with your increasing student loan payments?  If so, you are not alone.  The latest announcement by the U.S. Department of Education states that 11.8 percent of borrowers are now in default.  Default in this instance is defined as being 9 or more months behind in payments.


If you are behind in paying your student loans, the lender can accelerate your loan, meaning that the entire unpaid balance of the loan with any interest is due immediately.  You can also lose your eligibility for a deferment, forbearance or repayment plans.  You could lose your eligibility for additional federal student aid.  Your loan could be assigned to a collection agency.  In more severe cases, you could have your wages and tax refunds garnished or you could be sued for the debt.  After the payment reaches 90 days past due, the delinquent status will be reported to the three main credit bureaus.  As well, your interest rate on the loan will increase and you will have collection fees added to the debt.


If you are facing any of these problems with your student loan, call me immediately.  While it is very difficult to discharge a student loan in bankruptcy, simply filing the petition for bankruptcy will stop any wage or tax refund garnishments.  It will also stop the student loan company from calling to harass you or send you threatening letters.  It will buy you time to deal with your other creditors first, so that you can then concentrate on the student loans.  If you file bankruptcy, you can take care of your credit cards, medical bills and other unsecured debt, freeing up room in your budget to take care of your student loans.


Please call to schedule a time to meet with me for a free consultation.  We can discuss your debts, including your student loans and make a plan to get you to a place where you can pay the debt. If you would like to discuss your bankruptcy options, please call me at 281-847-4345 to schedule a free consultation. Or send me a mail.

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