Illinois bankruptcy help for student loans Archives - Peoria Bankruptcy Lawyer Charles Covey

Student Loan Repayment Pause Extended

December 30, 2021

The student loan repayment pause which was set to end February 1st is now been extended until May 2022. The pause on the repayment of federal student loans in response to the Covid-19 pandemic has provided many Americans with needed financial relief with the extension giving those who have fallen behind financially a few more months to come up with a plan to tackle their financial difficulties. For some, chapter 7 or 13 bankruptcy is a good strategy to recover from the economic downturn that … [Read more...]

End of Student Loan Repayment Freeze

July 19, 2021

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 … [Read more...]

Pandemic Relief Bill Falls Short for Many

January 14, 2021

The new $900 billion Pandemic Relief Bill will include enhanced unemployment benefits and direct cash payments, which many Americans desperately need as closures and restrictions related to Covid 19 continue. Although many were hoping for more, as it stands, eligible individuals will receive $600 in direct stimulus payments and families will receive additional funds for children if their adjusted gross incomes do not exceed the threshold. For the many Americans who are out of work, a $300 … [Read more...]

Many Consider Bankruptcy as Payments Become Due

January 11, 2021

Many Americans have had to adapt to harsh financial realities due to increased unemployment or under employment due to Covid-19. As of November, estimates reveal that for every 16 unemployed people, there are only 10 jobs available, with older workers losing jobs faster and returning to work slower than their younger, mid-career peers. Those who are able to find work may only secure part time employment, while some seasoned professionals have had to accept salaries well below … [Read more...]

Bankruptcy and Parent Plus Loans

February 27, 2020

Many parents take out Parent Plus Loans on behalf of dependent undergraduate students to bridge the gap between federal student loans and remaining college tuition. With college education costs at an all-time high, many parents wind up taking on substantial student loan debt to help their children get through school. Today, 3. 6 million parent borrowers owe over $96 billion in Parent Plus Loans and, unfortunately, many are struggling to pay them back. Of course, parents want their kids to … [Read more...]

Bankruptcy and Co-Signors to Student Loans

January 22, 2020

With the cost of education skyrocketing, more kids are turning to parents and grandparents to cosign on private student loans, leaving them liable for payments if the child cannot pay the loan, becomes disabled, or in the event of the borrower’s untimely death. Co-signors stepping up to the plate happens more often than one would think. The number of people over the age of 60 paying off student loan debt on behalf of a family member has quadrupled over the last decade. If you are considering … [Read more...]

Discharging Debt in Bankruptcy to Target Student Loans

October 28, 2019

More than two decades ago, the student loan income dependent repayment plan was created to help stem the rising number of defaults. in a nutshell, the plan allows borrowers to make payments of anywhere from 10 to 20 percent of discretionary income (defined as income earned over 150 percent of the poverty level adjusted for household size) with the promise of forgiveness for any remaining balance after a period of 20 to 25 years. Sounds great, however, so far only a couple dozen borrowers have … [Read more...]

Bankruptcy Protection Strategies to Tackle Student Loans

September 17, 2019

Every 28 seconds another student loan borrower defaults on their loan, underscoring how student loan debt is wreaking havoc on borrowers who are having a difficult time paying these large loans back. Whether they are federal or private student loans, the number of defaults highlight the difficulties student borrowers are facing. Currently, there is 1.5 million in outstanding student loan debt in the U.S. with student loans representing more than a third of severe derogatory balances. Federally … [Read more...]

Americans In Over Their Heads Trying to Stay in the Middle

August 13, 2019

While some believe that middle class is defined by economic resources, others say it is a state of mind revealed through behavior, cultural tastes, or certain kinds of consumption. Whatever your take, staying in the middle class is getting more expensive and financial stress is running high across the nation. As cars, homes and healthcare skyrocket, wages have remained stagnant. But, that hasn't stopped consumers from piling on more debt. According to a recent Wall Street Journal article, … [Read more...]

Financial Literacy Needed Before Taking Student Loans

April 30, 2019

Although many young adults in high school have their sights set on attending college, few are financially savvy enough to understand the long term consequences of taking student loans. This is especially troubling at a time when college tuition is skyrocketing. With student debt climbing, efforts to beef up financial literacy instruction in high schools has emerged and a number of states have moved to push legislation requiring basic financial courses to graduate. As it stands, however, only … [Read more...]