Stockton Student Debt Relief Lawyers 

If you fail to make payments on a federal student loan for up to nine months, you are generally considered to be in default. You are deemed to be delinquent the first day after missing a payment. For those in default, you could be facing unpleasant consequences. 

What Happens If You Don't Pay Student Loans

These can include:

• Collection fees from third-party servicers added to your balance
• Wage garnishment
• Ineligibility for new federal student loans or grants
• Money withheld from your income tax refunds
• Money withheld from Social Security or other government payments
• Damage to your credit score for up to seven years
• Potential professional or vocational license suspension
• Denial of security clearances, promotions, and more for military service members or federal employees

To avoid these consequences, you should tackle your delinquency earlier rather than later. Without answers, you could wind up paying more than your original loan amount. Getting help from a knowledgeable student debt attorney at our firm can lead to finding appropriate solutions for your dilemma.

Student Loans & Bankruptcy

In general, student loan debt is not dischargeable through bankruptcy. Only in extremely limited cases could you prevail in court through what is called an “adversary proceeding” against your student loan lender who will likely challenge your case. In these situations, you must prove that repaying your debt would cause extreme hardship. This hardship could consist of a severe health condition backed up by medical testimony proving that you are physically or mentally unable to earn enough to make your payments. Other forms of hardship may include dire economic conditions that put you at a poverty level or having reached retirement while still owing a substantial amount of student loan debt. However, courts have wide discretion in deciding whether your circumstances fulfill the “hardship” criterion. 

Other Forms of Student Debt Relief

Other, more available forms of student debt relief may be pursued depending on your situation. 

These may include:

• Refinancing your existing debt.
• Consolidating multiple loans into one monthly payment to a single lender.
• Deferment of your debt for up to 36 months. This gives you a chance to straighten out your finances so that you can afford payments when they resume.
• Forbearance. This temporarily decreases or suspends your payments for up to 12 months. An example of this is the COVID-19 suspension of student loan payments by the Department of Education in 2020 extending up to September 30, 2021.

 

FAQ: Stockton Student Debt Relief Lawyers

What Are My Options if I Can’t Afford to Pay My Student Loans?

If you’re struggling with student loan payments, you may have several options, such as deferment or forbearance to temporarily pause your payments due to financial hardship. You might qualify for loan forgiveness programs depending on your employment or repayment plan. Income-driven repayment (IDR) plans allow you to adjust payments based on your income and family size. Refinancing can consolidate loans to lower interest rates and monthly payments. Our team can review your circumstances and recommend the most effective course of action to manage your debt.

What is Public Service Loan Forgiveness (PSLF)?

PSLF is a program that forgives the remaining balance on your student loans if you work full-time for a qualifying public service employer, such as government or nonprofit organizations, and make 120 qualifying payments under an eligible repayment plan. Our attorneys can help you navigate the complex requirements to ensure your eligibility.

Can I File for Bankruptcy to Discharge My Student Loans?

Discharging student loans through bankruptcy is challenging but not impossible. You must prove undue hardship, which typically involves demonstrating that you cannot maintain a minimal standard of living while repaying your loans, your financial situation is unlikely to improve, and you’ve made good-faith efforts to repay the debt. We can assess your situation to determine whether bankruptcy or other alternatives might be the best solution.

What Happens if I Default on My Student Loans?

Defaulting on student loans can lead to serious consequences, including wage garnishment, tax refund offsets, and damage to your credit score. It may also make you ineligible for additional federal student aid. However, options like rehabilitation, consolidation, or renegotiating a payment plan can help you recover from default. Our legal team can assist you in exploring these options and finding a solution to regain financial stability.

How Can the Law Office of John Kyle & Gregory Smith Help Me?

Our experienced attorneys provide personalized guidance for managing and resolving student debt issues. We’ll help you explore forgiveness programs, create manageable repayment plans, or consider other legal remedies to alleviate your financial burden. Contact us today for a free consultation to discuss your options.

Let the Law Office of John Kyle & Gregory Smith Help You 

When unable to make your student loan payments, you should turn to a qualified attorney who can help you pursue the best possible option. Our firm can provide the guidance you need to explore your available alternatives. Our goal is to help you navigate the applicable process towards a resolution that suspends, reduces, or otherwise handles your situation. We want you to be able to move forward without the stress of delinquency and the consequences of default. With more than 30 years of experience in debt relief, we are well-equipped for the task.

Reach out to us online or at (209) 243-7560 to get experienced legal assistance from our student debt lawyer today.