5 Things Student Loan Lawyers Ask Borrowers Who File For Bankruptcy
Pay down your principle. Much of your monthly payment will go to paying off the interest on your loan. You can actually reduce the amount of interest you pay over the life of the loan (and save money) by paying down the principal of the loan. If you can pay more than your monthly payment, pay down principal by adding a written note with your payment specifying that the surplus should be applied to your principal. Check out more information on paying more than your monthly requirement here .
Fewer than 1,000 people try each year. Those who do are required to file a lawsuit against their lenders and then convince a bankruptcy judge that theyre so poor theres no hope of ever repaying the loans. Lawyers for the U.S. Department of Education, which guarantees most of the roughly $1 trillion in outstanding student loan debt, have been criticized for making unreasonable arguments to sway judges that struggling borrowers can afford their monthly student loan payments. Here are five of them.
Student Loans: A Financial Bubble in the Making?
One day, analysts could be looking at rates even higher. But how bad would it have to get for a “bubble” effect, and what would that do to students whose bank accounts and earnings are on the line? “A bubble starts getting attention when it affects one-third of a relevant population,” says Kantrowitz. “One-third is the key factor. What this means is that these borrowers may not be able to save for their own kids’ college education because they’re devoting their money to paying back their own loans … and they won’t borrow from loan programs because they’re up to their eyebrows in their own student-loan debt.” Kantrowitz describes something familiar.
Parent PLUS loan seen as parent trap
The student is being advised about financial support provided by the University such as short term loans to assist with living costs.” “The whole situation seemed completely unreasonable,” saidTsvetomir Dimitrov, a Bulgarian Obama student loan forgiveness program third-year Law student at the University of Northampton.He contacted SFE after a letter from his university stated he may have to begin tuition fee repayments. Both his loans have been frozen, and he was asked to provide bills, bank statements and tax information, he says. Luckily, his university have been understanding. The University of Northampton said:”This decision was taken by the SLC/SFE and has impacted a small percentage of students at the University of Northampton. The University’s Financial Guidance team has worked with students to provide the residency evidence to resolve the matter and reinstate funding.” Second-year Finance and Business Economics student Daniel Cegoreanu said that the situation is “nonsense.” He studies at the University of Bournemouth, and says he received an email from SFE asking him to pay back a 1,118maintenance grant.
Romanian and Bulgarian students fear exclusion from UK universities after being faced with loan freezes
Apply for federal and state financial aid. Carefully compare financial aid awards from schools offering admission. Appeal inadequate financial aid award from choice college with documentation about true financial situation, through the schools Financial Aid Office. Ask the school about grants, scholarships and work-study opportunities instead of loans. Get a part-time job that does not interfere with studies. Do not attend an unaffordable college.