student loan forgiveness programs Archives - Peoria Bankruptcy Lawyer Charles Covey

Options for Borrowers Who Cannot Repay Student Loan Debt

March 22, 2020

On average, students are graduating college with more than $30,000 of debt translating into hefty payments often spanning a decade. Getting behind on federal student loan payments can lead to serious financial consequences so at the first sign of trouble, it’s important to act. Borrowers should first contact their loan servicer to see what repayment plans exist. Typically borrowers are enrolled in the standard repayment plan when payments begin, but there are a few to choose from that might … [Read more...]

Discharging Student Loan Debt Under Brunner Test

February 17, 2020

Recently an U.S. bankruptcy judge in New York discharged a Navy veterans $200,000 plus student loan debt for undue hardship creating a buzz among borrowers struggling with insurmountable student loan debt of their own. After all, the vet’s predicament was not unlike many other student loan borrowers’ stories. Like many students, he took a series of loans to pay for his undergraduate degree and a bit more when he decided to go to law school. As the years flew by, he piled on interest and … [Read more...]

Public Service Loan Forgiveness

May 9, 2019

The first wave of students eligible for debt forgiveness in professions such as teaching and nursing under the 2007 Public Service Loan forgiveness plan may be in for an uphill battle to have their loans paid off. Out of the more than 73,000 borrowers that have applied for Public Service Loan forgiveness as of March 31, only 864 have had their loans erased. The forgiveness program was supposed to help those working for a government entity or nonprofits seek relief in what are typically lower … [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...]

Trading Student Loan Debt For Mortgage Debt

September 20, 2018

With the average undergraduate leaving college with $30,000 plus of debt and with no plans to purchase a home anytime soon, mortgage lenders are starting to get more creative. Mortgage lender Fannie Mae, for example, has laid out a plan for student loan borrowers, and parents who have cosigned loans, to trade student loans for mortgages, offering incentives which might be worth a look. First, by expanding cash out mortgage refinance options, borrowers can roll a higher interest student … [Read more...]

Student Loan Forbearance Warning

May 31, 2018

A new GAO (Government Accountability Office) report is warning student loan borrowers against taking forbearance on student loans for any extended period of time. A forbearance agreement is way to postpone payments to avoid defaulting on student loans when borrowers are hit with a difficult financial situation. Forbearance is offered to borrowers in 36 consecutive month increments to keep their accounts in good standing. While this may sound like a heck of a deal, the catch is that student … [Read more...]

Some Student Loan Debt Dischargeable in Bankruptcy

April 23, 2018

Of interest to individuals considering bankruptcy with student debt, a bankruptcy judge in Texas has denied a request by the student loan company, Navient, to dismiss a class action suit accusing the company of collecting on loans discharged through bankruptcy. As the case moves forward, it may provide the appellate court the opportunity to ring in on the question of whether loans historically exempt from bankruptcy discharge can now be considered when wiping the slate clean in a chapter 7 … [Read more...]

Student Loan Forgiveness for First Time Home Buyers

February 27, 2017

With young adults graduating from college with an average of 37K of debt, buying a first home has taken a backseat while many struggle to pay off student loans. Coincidentally, states left with a surplus of foreclosed homes in the wake of the housing collapse are short on buyers. Many states are coming up with creative solutions to encourage first time mortgage seekers to make a deal. The state of Maryland is offering to wipe out student debt in exchange for purchasing a home owned and … [Read more...]