Federal Student Loans
Skilled Student Loan Lawyers in Harris & Montgomery Counties
Thousands of Texas students take out federal student loans to help pay for their college education every year. Chances are, when you got your loans, plans included graduating, getting a job, and paying off your loans, so you didn’t worry about it. Then the bills started arriving.
Fast-forward to today.
Now, your finances are tight because you’re unemployed or underemployed and the bills are piling up. If you’re making the payments that your servicer assigned, there’s nothing left for the down payment on a mortgage or a car. If you have missed payments or are in default, you are wondering about your options. Thankfully, there are a variety of payment plans that can help you handle overwhelming student loan debt.
Rick J. Deal is a Conroe student loan lawyer. He can help you understand your options and work toward student loan forgiveness or repayment. Contact us today or call (936) 499-5780 for an analysis. We can evaluate your case and show you which alternatives can help you the most.
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Federal Student Loan basic Repayment Plan
Whether you complete your program (graduate) or not, the first federal student loan payment is due six months from when you finish classes. If you didn’t make arrangements with your student loan servicer at least 45 days before the first payment was due, you are on the standard repayment plan. It takes the sum of your student loans and interest, then divides it into 120 installments (10 years). For example, your payments will be about $417 a month if your loans are $50,000, depending on interest rates.
If you have significant debt, such as medical bills or you are unemployed, this monthly requirement may be too much for you to pay. However, there are several other options. Some are based on your income while others take your degree and field of expertise into consideration.
Student Loan Repayment Plans
After the analysis, we may be able to change from the default plan to one that could reduce your monthly payments, giving you some much needed breathing room. Student loan repayment options include:
- Extended Repayment Plan
- Graduated Repayment Plan
- Income-Based Repayment Plan (IBR)
- Income-Contingent Repayment Plan (ICR)
- Income-Sensitive Repayment Plan
- Pay as You Earn Repayment Plan (PAYE)
- Revised Pay as You Earn Repayment Plan (REPAYE)
Consolidation
Are you making several monthly student loan payments, each for a different amount? If you signed financial paperwork each year you were in school, you likely took out multiple loans. Each of them could have a different interest rate. A direct consolidation loan combines those educational loans into one payment, instead of several. Benefits include:
- Allowing you to qualify for repayment plans and forgiveness programs
- Switching from variable rate to fixed rate interest
- Simplifying your monthly payment requirements
- Giving you a longer time to repay your debt
There are 20 different types of federal student loans that you can consolidate. They include nursing student loans, Direct PLUS loans, and parent loans for undergraduate students.
Rehabilitation
Loan rehabilitation helps you get back on track if you have defaulted on your federal student loans. We can work with the servicer and negotiate on your behalf. Once rehabbed, we can consolidate the loans and get you into a repayment plan. This can reduce the amount of monthly payments, give you some breathing room and allow you to take back control of your finances.
Did you know?
Bankruptcy doesn’t automatically include student loan defaults. However, depending on your circumstances, you may qualify for student loan discharge. We can help you determine if Chapter 7 bankruptcy can help you reclaim financial stability.
Deferment and Modification
Lenders that are part of federal student loan programs are required to give borrowers the opportunity to negotiate their repayment plans at least one per year. You might be able to extend the loan repayment period, which may reduce your monthly payment amount significantly. Depending on your unique situation you may be eligible for a plan that allows you to extend the payments up to 25 years. Other options allow for flexible payment amounts, based on your gross annual income. Ask us about which student loan repayment plans you may qualify for and how to negotiate for a more practical payment schedule.
Did you know?
Lenders for federal programs must offer deferment options to borrowers who can prove hardship. If you are eligible, student loan deferment gives you time to get your finances in order and restart regular payments after a few (or several) months.
Forgiveness
There are several factors that affects whether the Federal government forgives some or all of your student loans, such as the school you attended, your circumstances, and current career path. Some of the most common types of student loan forgiveness include:
- Disability discharge
- Discharge of loans for students who attended a school that closed while they attended, or shortly after
- Forgiveness for teachers
- Forgiveness for public service employees
Texas also has student loan forgiveness programs for a broad range of careers, from teaching to law and healthcare. Contact us at (936 499-5780) to learn more about student loan forgiveness programs and discuss your options.
Contact a Conroe Student Loan Lawyer Near Me
Student loan law is a specialized niche, with complex requirements. We have the training and experience to help you get back on track. Contact us today or call (936) 499-5780 and find out what your options are and make the choice to move forward with the rest of your life.
