Category Archives: Student Loans

Student loan debt is a common source of financial strain for Americans. Our Kansas City bankruptcy attorney helps those struggling with student loan debt.

Do You Meet the Six Requirements for Public Service Loan Forgiveness?

George W. Bush signed the College Cost Reduction and Access Act (CCRAA) into law in 2007. The CCRAA created the Public Service Loan Forgiveness Program (PSLF), which allows some federal student loan borrowers working at qualifying public service jobs to receive tax-free loan forgiveness. Student loan borrowers qualify for forgiveness under PSLF if they meet the requirements—for which there are many. Unfortunately, student loan servicers and the Department of Education failed to effectively communicate these requirements to borrowers. Many borrowers who believed they were eligible for PSLF forgiveness are finding out their loans or jobs never qualified. As a result, some borrowers have made the required ten years of payments only to find out their loans were never eligible for forgiveness. You can only receive PSLF forgiveness if you meet the following requirements: Requirement #1: You have federal loans. Private loans do not qualify for PSLF. If you are thinking…
Read More »

Posted in Student Loans | Tagged | Leave a comment

How to Stay on Top of Your Federal Student Loans

Federal student loans are held by millions of people in the United States. However, the default rates on these loans continue to increase. In fact, the Brookings Institution argues that nearly 40 percent of federal loan borrowers could default by 2023. What many borrowers may not realize is that federal student loans have multiple repayment programs and tools that can prevent default. There are also loan forgiveness options for federal student loans. When attorneys Neil Sader and Michael Wambolt penned an article for Primerus Paradigm on federal loans, they emphasized that “what you owe is less important than what you know.” You must know which types of federal loans you carry to take advantage of these programs. Using the National Student Loan Data System The Department of Education’s Federal Student Aid Office (FSA) maintains the National Student Loan Data System (NSLDS). You can access your federal student loan data by…
Read More »

Posted in Bankruptcy eNewsletters, Student Loans | Tagged , | Leave a comment

Five Common Student Loan Debt Myths You Should Watch Out For

If you have student loan debt and have been researching options to mitigate or get rid of it, don’t let these common student loan debt myths fool you: Debunking Common Student Loan Debt Myths Myth 1: Student Loan Consolidation Will Lower My Interest Rate Consolidating your loans will not likely result in a lower interest rate. A Federal Direct Consolidation Loan will apply a fixed, or stable interest rate to your loan, so you will have the same interest rate for the entirety of your loan. Your new interest rate will be a weighted average of the interest rates on your previous loans. Myth 2: I Can Simply Stop Paying My Student Loans When They Become Too Burdensome No. Unfortunately, this statement is not true. The consequences of stopping your loan payments depend on the type of loan you have. If your loan becomes classified as default or sent to…
Read More »

Posted in Student Loans | Tagged , | Leave a comment