With the federal freeze on student loan payments coming to an end September 30, 2021, borrowers across the country will be required to resume payments on their loans. After the financial hit many took during the pandemic, having another bill coming due is certainly not welcome news.
With a couple of months to go before the freeze ends, borrowers do have various options to consider for loan repayment such as a fixed plan with the same monthly payments, a graduated plan where payments increase over time, or for those with limited income, an income based plan that may qualify for loan forgiveness after a period of time.
Despite the various repayment options available to help borrowers manage their student loans, some who are facing a difficult financial situation may want to explore options such as bankruptcy protection. Although student loans are not dischargeable under bankruptcy with few exceptions, the option to discharge unsecured debt such as credit cards, medical bills or unsecured loans can provide some breathing room to tackle other expenses and get a fresh start.
When you have questions as to whether bankruptcy protection is a good strategy for your student loan situation, contact the Peoria bankruptcy law office of Charles E. Covey to learn more about your options at 309-674-8125.