Student Loan Debt Attorney in Oklahoma, Oklahoma
Today’s United States citizens owe a big amount of money in student loan debt alone. This debt problem is financially debilitating for many families, leading them to fall short on other payments and forgo numerous basic requirements. Although the purpose of student loans is to help people attend college so they may improve their financial situation, for many people, the reality is quite the reverse for many people. With the state of the employment market, student debt prevents many families from thriving. Student loans are not among the normal types of debt that bankruptcy often eliminates or lessens, although many people turn to bankruptcy.
Our trusted Oklahoma student loan debt attorney will help you understand how to escape certain challenging circumstances brought on by your debt and can guide you through the complex world of student loans.
If you tried to assess your student loan debt on your own, you might not have had access to the resources and tools that Scott Harris Law, PLLC can give you. Regarding your legal rights and alternatives, our Oklahoma student loan debt lawyer may offer you legal advice and assistance. Schedule an appointment today to put an end to your school loan debt!
Why do I need a School Loan Debt Attorney in Oklahoma?
People believe that nothing can be done but suffer through student loan debt for years upon years because it is often believed to be “unbankruptable.” Although debt from student loans is often not wiped in bankruptcy, this isn’t always the case. With the assistance of a student loan debt lawyer, you should thoroughly research your alternatives for a student loan resolution because bankruptcy courts do have the authority to discharge student loan debt under specific circumstances.
It is true that managing student loan debt is a challenging situation that can be disconcerting and overwhelming, but when you have an experienced student loan debt lawyer on your side, you can anticipate feeling confident and at ease throughout the entire process and knowing that you are both diligently working to ensure that you get a result that works for you.
Scott Harris Law, PLLC can help you settle your debts and find the best debt relief option that suits your situation. Contact us now and our skilled student loan debt lawyer can help you with your legal case.
What is Student Loan Debt?
Student loan debt refers to money owed on loans obtained to cover educational costs. Student loans are now often the only way for many students to pay for college due to the quickly rising cost of tuition. It usually occurs when a student takes out loans to pay for the percentage of their tuition that cannot be covered by grants, their own assets, loans from their parents or guardians, scholarships, or other financial aid.
Although it is possible for students to save money to put toward the expense of higher education, the likelihood of meeting such fees without financial support is dwindling due to the rising cost of that education at many schools.
To understand more regarding Student Loan Debt, call our Oklahoma Student Loan Debt right away.
Plans for Income-Based Repayment to Assist in Paying Off Student Loan Debt
One of the following programs may be available to you if your income is unstable or low or if your student loan debt is excessive in relation to your income.
Income Contingent Repayment Plan (ICR)
You can choose this type of plan, which bases your payment amount on your income, when you have a federal Direct Loan. Your payment per month in this plan is the lesser of:
- 20% of your discretionary income
- the sum that, based on your salary, you have to pay over the course of a 12-year repayment schedule with a fixed payment.
After 25 years, the government would forgive any remaining loan debt if it hasn’t been repaid in full.
Income Sensitive Repayment Plan (ISR)
Your payments through this type of plan, which is offered only for specific loan types, including unsubsidized and subsidized Federal Stafford Loans, FFEL Consolidation Loans, and FFEL PLUS Loans, depending on your annual income, the size of your family, and the total loan amount.
Income-Based Repayment Plan (IBR)
An Income-Based Repayment plan is available for:
- Unsubsidized and Subsidized Direct Loans
- Stafford Loans, Subsidized and Unsubsidized
- All student PLUS loans made, and
- Direct or FFEL Consolidation Loans that exclude Direct or FFEL PLUS Loans to parents.
If you are a new borrower on or after July 1, 2014, this plan requires payments equal to 10% of your discretionary income, but never above the 10-year standard repayment plan amount, or 15% of your discretionary income, but never above the 10-year standard repayment plan amount, if you are not a new borrower on or after July 1, 2014.
The government will forgive the outstanding sum on your loan if you still owe money after 20 years (for new borrowers on or after July 1, 2014) or 25 years (if you weren’t a new borrower on or after July 1, 2014).
Pay As You Earn Repayment Plan (PAYE)
Your monthly payments under this plan will never be more than 10% of your discretionary income throughout the 10-year repayment period. (Payments that under standard repayment plan have a set amount.)
The following types of loans are eligible for this repayment plan:
- Unsubsidized and Subsidized Direct Loans
- Made-to-students Direct PLUS loans, and
- PLUS loans (Direct or FFEL) given to parents are excluded from Direct Consolidation Loans.
The remainder of your debt is forgiven if you have not paid it off in full after 20 years.
Revised Pay As You Earn Repayment Plan (REPAYE)
This plan’s monthly contributions are 10% of your discretionary income, similar to PAYE. If you haven’t repaid the debt in full after 20 or 25 years, the remaining sum is forgiven. Loans from the following categories are qualified for REPAYE:
- Unsubsidized and Subsidized Direct Loans
- Made-to-students Direct PLUS loans, and
- PLUS loans (Direct or FFEL) given to parents are excluded from Direct Consolidation Loans.
Alternative Plans for Paying Off Student Loan Debt
Standard repayment plans, graduated repayment plans, and extended repayment plans are further repayment schedule options.
Get in touch with our Oklahoma bankruptcy attorney at Scott Harris Law, PLLC to learn the details of the student loan payment program suitable for you.
What Happen If I Fall into Student Loan Default?
A federal student loan default can have substantial consequences, including wage garnishment, tax refund offsets, federal assistance intercepts, loss of eligibility for deferment, repayment plans, and likely forbearance.
Consolidating Your Student Loans To Lower Interest and Payments
You can consolidate one or even more of your federal student loans into a single loan with a single monthly payment using a direct consolidation loan. If you wish to lower your interest rate, you are not eligible for another plan program, you do but still find it difficult to make the payments, or you need to exit default. This type of loan may be beneficial.
Student Loan Debt Deferment to Delay Student Loan Payment
A deferment allows you to postpone paying back your student loans for a predetermined period of time due to a particular circumstance in your life, such as going back to school, experiencing financial difficulty, or being unemployed. Subsidized loans won’t earn interest while they are being deferred.
Obtaining a Forbearance to Stop Paying Student Loans Temporarily
Through loan forbearance, your loan holder authorizes you to temporarily make lower payments or to stop making payments altogether for a predetermined period of time. Poor health, unexpected personal issues, inability to repay the debt within ten years (or another long-term period), or month-to-month loan payments that consume more than 20% of your salary are all common grounds for deferment.
Getting Rid of Student Loan Debt by Cancelling Loans
It is possible to completely eliminate your student debt in some circumstances, which is known as student loan cancellation, discharge, or forgiveness. You must adhere to very strict requirements. You may be able to cancel some of the loans but not all of them in some cases.
The following situations may allow you to cancel your student loan:
- You went to or were enrolled in such a school that shut its doors while you’re there, before you began taking lessons, or shortly after.
- Due to your absence or withdrawal, your school declined to provide you with the money it owed you.
- Your school did not confirm that you were eligible to enroll in the “false certification” program.
- After graduating, you may pursue careers in teaching or other public service positions.
- You have a total and permanent handicap that prevents you from working and is predicted to last for at least five years or cause your death.
- The loan debt is discharged in the event of death of the borrower.
Bankruptcy for Student Loan Debt
It is highly challenging to have student loan debt dismissed through bankruptcy under U.S. law. The borrower must meet the high standard of proving that paying their student debts will cause them an “undue hardship” in order to be granted a discharge. However, if you petition for Chapter 13 bankruptcy, you might be allowed to use your Chapter 13 plan to pay off all or a portion of your student loans.
The test for determining whether there has been an undue hardship is set by case law. According to the Brunner test:
- If required to repay the student loans, the debtor is unable to sustain a “minimal” level of living for themselves and their dependents based on current income and expenses.
- There are more circumstances that point to the likelihood that this situation will continue for a large amount of the student loan repayment period; and
- The debtor made sincere attempts to pay back the loans.
According to some in the bankruptcy profession, the laws in a certain bankruptcy district as well as the judge working on the case can have a significant impact as to whether or not student loan debt is forgiven.
Call our Oklahoma Student Loan Debt Attorney Now!
You should always seek the advice of a student loan lawyer with extensive experience in debt relief if you are having trouble paying back your student loans. In the past, Scott Harris Law, PLLC has successfully argued to have student loan debt erased and has assisted clients through various kinds of bankruptcies. Please get in touch with us right immediately to set up a consultation so we can discuss your issue. Imagine how debt-free life might be like!
Additionally, our reputable attorney will assist you if you have legal concerns about Debt Negotiation and Foreclosure Defense in Oklahoma.
