Recently, the media has reported that rising college costs are driving private student loan growth.
According to TheDailyStar.com, Americans currently owe $1.3 trillion in student debt—an amount that now represents the fastest-growing area of consumer debt in the country. Interestingly, part of this is due to the number of people taking out private student loans. Economists say that the number of private student loans being issued has increased by more than 8 percent over the last two years.
The number of people graduating with tremendous private student loan debt is alarming—private student loans generally have higher interest rates than government-backed loans do, and they can have variable rates that do not stay the same over the life of the loan.
As Lewisville bankruptcy attorneys, our firm often works with people who are in tremendous financial holes because of issues with student loans. If you are struggling to pay your student loans, you should know that you have options.
First, you may want to discuss your situation with your lender, as you may be able to work out an income-based repayment plan. If you continue to have issues, contact our Lewisville bankruptcy attorneys so that we can review your case and come up with an alternative plan for paying back your student loans.
It is very difficult to discharge student loans through bankruptcy. However, we have read many stories about people who are utilizing Chapter 13 bankruptcy to enter into manageable repayment plans for student loan debt.
Through a Chapter 13 bankruptcy filing, people enter into payment plans with creditors based on their income. In August, we discussed this process in our blog—one Pennsylvania man was able to reduce his student loan payments from about $1,000 per month to about $200.
In addition to Chapter 13 bankruptcy, if you are struggling with student loan payments, you may be able to file for Chapter 7 liquidation bankruptcy, depending upon your income. Through a Chapter 7 bankruptcy, you may be able to reduce or eliminate other debts, including credit card debt and medical bills, which can help make student loan payments easier.
Talk to Our Lewisville Bankruptcy Attorneys About Your Student Loan Debt
While it may be extremely difficult to discharge student loans through bankruptcy, you do have options when it comes to making payments easier or reducing how much you owe.
Speak to our Lewisville bankruptcy lawyers about your legal options when it comes to eliminating or reducing student loan debt. You can reach us by calling (972) 315-6222 or by using the case review form located on this page.
Shuster Law Firm PLLC – Lewisville Bankruptcy Attorneys