Tag Archives: StudentLoans

Should It Be Easier for Student Loans to Be Dischargeable?

In the 1970s, the number of college graduates defaulting on their federal student loans spiked. In response, Congress granted special status to federal student loans. New laws prevented student loans from being discharged in bankruptcy court unless the loans imposed “undue hardship” on the borrower. As judgements only appear to be increasingly stringent on what circumstances qualify as presenting an “undue hardship” for borrowers, some experts and judges are wondering if the law needs to change. Could Student Loan Discharges Become More Common? In today’s United States, the average college graduate leaves school with approximately $36,888 of debt. This number is more than double the average student debt figures from 1993. As the need to take on college debt increases, more and more borrowers are finding it harder to make ends meet. According to a report from the University of Pennsylvania Law School, nearly forty percent of Chapter 7 and…
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How Can You Lower Student Loan Payments?

The Consumer Financial Protection Bureau (CFPB) has accused student loan servicers of failing to enroll borrowers into income-based repayment programs. As a result, borrowers are paying more than they have to and defaults have increased. You may have multiple options to lower student loan payments. Income-driven repayment programs tie monthly payments to a percentage of your discretionary income. Your options for participating in these programs vary depending on the types of loans you have and when they were dispersed. The first step to seeking lower payments is to use the Department of Education’s National Student Loan Data System (also known as the NSLDS). After logging in, you should see the types of loans you carry and information on your loan servicers. More details may be available on the top portion of your Master Promissory Note (MPN) for your loans. What Are the Eligibility Requirements for the IBR Program? There are…
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4 Reasons Why Filing for Bankruptcy Can Be a Good Thing

Our society attaches a stigma to bankruptcy, seeing it as a personal failing. This stigma is unrealistic, and it is unfair to people who can benefit from bankruptcy. Unexpected medical emergencies, divorce or a slowdown in business can happen to anyone. Filing for bankruptcy can be a good thing if debts are putting your most prized assets at risk. 4 Benefits of Filing Bankruptcy Stop collection attempts: Creditors must cease collection attempts after you file for bankruptcy. This includes collection agency phone calls, wage garnishments and attempts to foreclose your home or seize your vehicle. Protect your business: Chapter 11 bankruptcy can be a lifesaver for struggling business owners. By filing for Chapter 11, you can reduce debts while remaining in control of operations. You get the chance to protect your business while finding new ways to become profitable. Improve your financial footing: One misconception is that bankruptcy destroys your…
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