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Concord Lawyers Provide Help If You Can’t Pay Your Student Loans

Ferguson Hayes Hawkins, PLLC Jan. 25, 2017

Many people today need student loan debt help. Students who are struggling with paying off student loans worry about getting their tax refund taken or their wages garnished. Even if you file for bankruptcy, you will probably still have to deal with student loans.  Student loans are not discharged except in the case of undue hardship.  That is why you will need to keep paying your student loans even though you are having financial problems.

You do not want your loan to go into default. In most cases, loans go into default if you have not made a payment within the last 180 days. Your credit score will be impacted if your student loans go into default. Fortunately, you have several options if you are struggling with paying off student loans. Below are those options: 


Deferment is one of the most popular options among people who need student loan debt help. You will be able to temporarily suspend payments if you get a deferment. If you are disabled, enrolled in school, unemployed, in the military or providing care in a needy area, then you may be eligible for a deferment. 


If you get a forbearance, then you will get your payments reduced or temporarily postponed due to financial problems.


In some cases, your student loan debt may be able to get cancelled completely. Disability, full-time military service, law enforcement work, public service and withdrawing from school before completing without getting a refund are examples of some of the situations that may qualify you for a student loan cancellation.


Consolidation is the act of combining all of your loans into one. This can make it easier for you to manage your student loan debt because you will only have to make one payment. The interest rate may also be lower. Furthermore, making one payment is a lot easier than having to make multiple payments every month.

Income-Based Repayment

You cannot re-finance a student loan the same way that you re-finance your mortgage. However, you may be able to get a more manageable payment plan based on your income. That is why you may want to apply for an income-based repayment plan.


Bankruptcy filings can assist with student loans in several respects.  First, in either a Chapter 7 or a Chapter 13 the debtor will have the advantage of being able to rid him/herself of other debts which might be making it difficult to repay on the loan.  In addition, in the case of a Chapter 13 filings, there are some additional advantages:  1) the Chapter 13 entails a plan which, essentially, provides a deferment from the regular payment schedule for 3 to 5 years, and 2) Other debts, like car payments for example, may be reduced through the process by reducing the principal owed, reducing the interest rate, and spreading the loan out over more years to make it more manageable.

You should contact your student loan provider if you are having trouble making payments. If you are unable to get your loans negotiated or modified, then you should contact our Concord law firm. Our Concord lawyers can answer questions that you have about filing for bankruptcy and debt