Student Loan Debt Relief in Illinois
Middle-class Americans nationwide see college as the way out. The belief is that by obtaining a higher education, you’ll have the ability to pursue the career path of your choice and expose yourself to earnings that may have been unobtainable otherwise. While the statistics clearly highlight the difference in earnings between high school and college degree holders, statistics also show the financial burden many college graduates must live – and in some cases, die — with.
Sixty-six percent of Illinois graduates have student loan debt averaging around $29,305. With this number being the average, there are college graduates with much less and much more student loan debt. One must also note that the amount of debt one graduates with is rarely the amount they pay back as interest continues to accrue and many people choose to go back to school to further their education. Your debt may seem insuperable, but with the help of an Illinois student loan debt relief attorney, the idea of a debt-free future is made possible.
Main Types of Student Loans
The phrase “student loans” is an umbrella term that encompasses both federal and private student loans. Each has unique regulations and agreement terms, but both can accrue interest throughout the life of the loan.
Federal Student Loans
Federal student loans are those insured by the United States Department of Education. Once 270 days (roughly one week short of nine months) pass without payment, the government considers the account to be in default and collection can ensue. The account balance is the most significant surprise for borrowers as the total amount of the loan is due once in collections and a collection fee of up to 25% of the loan can be tacked on. Federal loans also provide the lender with the freedom to garnish up to 15% of your disposable income through administrative wage garnishment (AWG).
The benefit of having a federal student loan is that you have borrower rights and more repayment options. You can choose to consolidate, defer, or forbear your federal student loan as well as repay it based on income, repair a defaulted loan, and have it forgiven or discharged.
Private Student Loans
The government does not insure private student loans. They instead originate from private entities like banks. The state governs these loans and they, therefore, have a statute of limitations. None of the previously-mentioned remedies are available for private student loans as they are more so similar to credit cards regarding enforcement. The greatest difference between a private student loan and a credit card is that you cannot discharge them in bankruptcy. Those in search of private student loan debt relief will benefit most from acquiring an Illinois student loan debt relief attorney.
Options for Handling Student Loan Debt
Benveniste Law Offices houses attorneys with experience assisting college graduates with their student loan debts. Whether it be federal or private student loans, we can:
- Provide legal advice
- Handle credit disputes
- Litigate student-loan issues
- Communicate with lenders
- Help resolve delinquencies
Trust an experienced debt relief attorney to go to work for you! Contact us today at 1-800-497-5358 for a free case evaluation.