Top 5 Reasons to Avoid Bankruptcy in Illinois and Opt for Debt Settlement Using Benveniste Law Offices
Millions of Americans have defaulted on their student loans. Although it happens often, you want to tackle the issue head-on, as it can get worse if you allow it to persist. By being proactive about your student loan debt, you can ultimately save you a lot of time and money.
Student Loan Debt Payment Plans
There are many student loan payment plan options to choose from, each of which caters to your preferences. When you sign up for an income-based repayment plan, for example, your monthly income will determine your monthly payment.
Deferment and forbearance will allow you to postpone your monthly payments for a specified period. However, delaying payments may increase your overall amount owed.
Talk to the Education Department about Consolidation
The U.S. Department of Education allows you to pay the principal balance and fees on your loan and waive future fees and surcharges. You will, however, be responsible for the principal loan balance and half of the total interest as the government will forgive 50 percent of the interest.
You can also get a 10 percent discount when you pay 90 percent of the principal balance and fees. If you choose any of these debt reduction options, you will be expected to make one lump sum payment 90 days after the debt settlement agreement date. In some instances, the Department of Education allows monthly installments, but you have to complete your payments within one fiscal year.
When Can You Get Loan Forgiveness?
Loan forgiveness is available in certain situations. Some public service workers can utilize this option depending on the situation. Student loan discharge may become available when an individual sustains a permanent disability or when a school has committed fraud among other situations. One can apply for these loan repayment and reduction plans by contacting their student loan servicer or the Department of Education.
Do I Need Legal Help?
If you have more private student loan debt than public student loan, there are many different debt relief options available to you. Your loan servicer can help you explore these options, but debt renegotiation will most likely be the most favorable. Debt negotiation is a highly beneficial yet complicated process, which is why securing legal assistance may be of your best interest.
The experienced Illinois debt relief attorneys at Benveniste Law Offices can evaluate the terms of your loan, the scope of your debt, and engage in negotiation with your lender. We understand how lingering debt issues may interfere with your ability to make necessary life purchases. Get much needed relief by calling us today at 1-800-497-5358 for a free case evaluation.
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