Students graduating college in 2015 have the highest amount of student loan debt when compared to prior graduating classes. If you have student loans, you are not alone. College students are graduating with more student loan debt than ever. The average student loan debt for a graduating college senior is approximately $30,000. This figure is expected to continue to increase as college students borrow more money to obtain their undergraduate and graduate degrees.
Struggling with student loan debt is overwhelming. Choosing to pay your rent/mortgage and other basic living needs or pay your student loan payment is frustrating and frightening. There is hope. Contact the Law Office of Travis J. Richards to discuss ways you can manage your student loans.
Bankruptcy and Student Loans
It is true, most student loans are not dischargeable in bankruptcy; however, there are exceptions. To determine if you meet the narrow prerequisites for discharging student loans in bankruptcy, contact my office for a free bankruptcy consultation.
Even though you may not meet the conditions for discharging student loans in bankruptcy, a bankruptcy filing often helps debtors manage student loans better. A Chapter 7 filing discharges all of your other unsecured debts leaving you more money to repay your student loans while a Chapter 13 filing puts student loans in deferment until the end of the Chapter 13. We will discuss all of the pros and cons of filing bankruptcy during your consultation.
Paying Student Loans with Other Options
If student loans are your sole debt problem, you can discuss repayment options with your student loan company. Depending on your current financial situation, you may have several repayment options open to you.
Examples of some repayment options that you may have available include:
- Extended Repayment Plan – This is similar to a standard repayment plan but the term is extended up to 25 years rather than 10 years.
- Graduated Repayment Plan – This repayment plan has a lower payment in the beginning. The payments slowly increase each year.
- Income Based Repayment Plan – Your student loan payments are based on your current income. Payments will not exceed 15% of your discretionary income.
Your student loan company may have other repayment plans available. The first step is to discuss your situation with your student loan company. If you cannot work out a repayment plan that is within your budget, contact my office to discuss other options for dealing with your financial situation.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable
The Law Office of Travis J. Richards, LLC is a Mount Holly bankruptcy law firm focused on helping clients find affordable solutions to debt problems through a variety of resources including Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans, and foreclosure.
We represent clients in Burlington County and throughout South Jersey. Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.