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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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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We have written extensively on repayment options for federal student loans (and there are plenty), but have stayed somewhat silent on private student loans. The reason is that each lender is going to have different repayment options for private debt. Some may require small payments while undergoing economic hardship, others may not. For example, Discover does not offer traditional economic hardship or unemployment deferments, but allows borrowers to temporarily reduce interest rates and limit monthly payments to $50 under some circumstances. Sallie Mae does not offer unemployment deferments, but does allow borrowers to put loans into forbearance in some cases (after paying fees on the loans). These are good examples because it can show how repayment policies differ based on your lender. It also means that traditional methods for reducing payments, such as deferments or forbearance, may not be the best options with private higher education debt. With private student…
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*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
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