Student loan debt is one of the most significant looming financial issues in America today. Many young people are graduating with several years’ worth of student loan debt, which they have no way to pay off once they enter the workforce. Luckily, there are a few ways to get your student loans discharged or forgiven—after all, those loans were made so that you could get an education and improve yourself to make more money later on in life. If paying back your student loans would cause undue hardship on you or your family members. Then it might be possible for you to get out of that burden too! Here’s a brief overview of three different options available for getting some relief from student loan repayment:
Get relief from paying all your debt.
If you seek a student loan discharge, it may be tempting to assume that you’ll never have to pay back your debt. But this is not the case. When you apply for a student loan discharge, you’re actually applying for the forgiveness part of your debt.
In short, yes, there are ways to pay off your student loans completely. However, this can take years and require plenty of paperwork on your end. If these options sound appealing to you, speak with an attorney specializing in student loan discharge—they could help speed up the process and ensure everything gets done correctly.
#1 Bankruptcy might not be as scary as it seems.
Bankruptcy is a scary word. It conjures images of debt collectors and foreclosure notices, but it can also mean the difference between being free from student loan debt and being saddled with it indefinitely.
If you’re unable to pay back your student loans, filing bankruptcy might not be as bad as you think. In fact, depending on your situation, filing for bankruptcy could help get rid of those pesky student loans and give you a second chance at financial freedom.
#2 Establishing repayment of student loans would cause undue hardship.
To prove undue hardship, you’ll need to submit detailed documentation demonstrating the circumstances you believe make it impossible to repay your student loans.
The burden of proof is on the borrower when attempting to secure a discharge, so as long as you can provide convincing evidence proving that repaying your loans would cause undue hardship, your claim will likely be approved.
#3 A complaint against a student loan creditor would be best.
Your best bet for clearing your student loans is to file a complaint against your loan creditor. A student loan creditor is an organization that originated your debt. It can be your school, a lending agency, or even another party that has purchased your debt.
You can file complaints through the Department of Education’s Student Loan Ombudsman Group if you owe a federal loan. The Ombudsman Group will investigate borrowers’ claims that they were subjected to unfair treatment by servicers or collection agencies.
If you have private student loans (i.e., those from banks), then contact the company directly and ask them to forgive your debt under an “accelerated payment plan.”
The best way to find out if you qualify for student loan forgiveness is to consult a lawyer with proven experience. Godfrey Law Firm has defended students in Utah and throughout the United States against private lenders, the Department of Education, collection agencies, and other creditors for countless years.
Ted Godfrey has successfully negotiated payment plans with financial institutions on behalf of our clients so that their monthly payments are within their budget. We can also help negotiate with your lender to lower or eliminate interest rates and modify repayment terms so that you pay less each month. There can be more ways to help you with all the legalities by having a consultation now.
Don’t give up hope if you’re struggling with your student loans. There are more options than ever before to help you get out from under the pressure of your debt—and we may be able to help. If you’re ready to learn more about how we can help or want a free consultation, contact us today!