Millions of Floridians are carrying thousands of dollars in private student loan debt, and many are struggling to pay that debt. Sometimes, borrowers think filing for bankruptcy is the only way out from under that crushing debt load. If you’re worried that you can’t pay your private student loans and wonder what you should do, let the experienced bankruptcy team at Loan Lawyers help you.
What Are My Options If I Can’t Pay My Student Loans?
Private student loans are popular because they typically have lower interest rates than federal loans. However, the repayment options are not as flexible as those of federally subsidized loans, which is why so many individuals think bankruptcy is the only way out.
Private student loan forgiveness is not an option for most borrowers. It is possible that if you die or become disabled, the private lenders may forgive the debt.
You do have options that relieve the burden of your debt. Your lender may allow you to set up a new and more manageable payment plan, consider deferment, or refinance the loan. If you have crunched the numbers and still can’t make them work, filing for bankruptcy may be your only option to get private student loan debt relief. Check with Loan Lawyers to find out if bankruptcy is the answer for you.
Why Choose Loan Lawyers?
Loan Lawyers are a team of attorneys who specialize in lending law. We work with people considering bankruptcy to determine if that is the best way forward. Most people do not understand the complex regulations surrounding bankruptcy laws and take the advice of a bankruptcy lawyer without knowing that they have other options.
Our attorneys will review your situation with private student loan debt and look for solutions that aren’t as drastic as bankruptcy.
Why Bankruptcy for Private Student Loans?
You couldn’t eliminate private student loan debt until Congress passed the Private Student Loan Bankruptcy Forgiveness Act 2023. This new law allows the debt to be discharged in a bankruptcy filing without having to prove undue hardship. Until now, the debtor had to prove undue hardship to have those loans included in a bankruptcy discharge.
How Does the Punishment for Late Payment of Student Loans Differ Between Federal and Private Loans?
The penalties for defaulting on student loans depend on the kind of loan you have. Federal student loan providers can garnish your wages, federal tax return, or Social Security income. Private loan collectors don’t have that federal arsenal behind them, but they can sue you for the balance you owe. If you declare bankruptcy, you could have that debt restructured.
Contact Our Florida Bankruptcy Attorneys for a Free Consultation
Loan Lawyers has a track record of helping our clients find debt relief and foreclosure solutions in the South Florida area. Our attorneys are experienced in consumer rights law. They will use all the resources at our disposal to ease your financial burdens. Our priority is getting you back on the road to financial security. Call us or contact us online today to see how we can help you.
