I remember receiving glossy pamphlets luring me to different college campuses. However, at the naive age of seventeen I didn’t understand what $30,000 per year, plus room and board would equal in monthly installments after graduation. Shame on me, but this might be your plight as well. Is there a quick fix? An easy button? What about filing for bankruptcy?
Understand your Loans
Federal Student Loans are federally insured. Anything that you read about student loans magically disappearing is a scam. The federal government can insure your loans because they know that they will not forgive you the debt. If you declare bankruptcy your student loans will not be excused and will follow you out of the bankruptcy.
If you are unable to pay your current student loans contact your student loan company. If you are experiencing an economic hardship, such as unemployment, you may be able to put your student loan payments on hold for up to three years. This is not a financially advantageous option since your loan will continue to accrue interest, but is better than defaulting on your loans. You may also qualify for a reduced payment based on your income. This will only extend the life of the loan and the total amount you will pay.
Unlike federal student loans, private student loans are similar to credit card debt. The lender sets the terms and repayment schedule and they do not adjust for income or hardship. These loans may be discharged during bankruptcy, but it is not a common practice.
Create a Plan
Creating a financial plan to eliminate other debts can help you meet your student loan obligations. Sit down with a debt relief team and evaluate all your options. Your parents may be able to give you some tips on cutting out extra expenses, but a qualified debt relief team that includes licensed attorneys will be able to advise you if bankruptcy is an option you should consider and help you through the process. They will provide you with one-on-one services to alleviate your money issues. This will be the beginning of your fresh financial start. Your attorney will investigate your options and help you understand which path will provide you with the best outcome.
Michigan Law Solutions
Our experienced attorneys are committed to providing our clients with the guidance and support that they need to resolve their legal issues. With over five decades of experience serving clients in Southeastern Michigan, the attorneys of Michigan Law Solutions have the experience and resources to resolve your legal issues. With a broad range of expertise including, but not limited to: family law, probate, bankruptcy, and estate planning.
We are a debt relief agency and can help our clients file for bankruptcy relief under the bankruptcy code. Let us help you relieve your financial burden and set your life back on a successful financial path. Stability and peace of mind can be achieved, contact us for your free bankruptcy consultation.
Michigan Legal Solutions
28345 Beck Road, Suite 401
Wixom, MI 48393
Phone: (248) 869-0030
Fax: (248) 869-0039