Student Loan Repayment Options
The times have changed. Obtaining a college degree used to be regarded as an optional step that might help to set a graduate apart from other applicants for professional positions, or as a necessary measure to gain the skills and knowledge for a specific field of employment. Now, however, even an advanced degree may not be sufficient to guarantee access to job opportunities, but a baccalaureate degree is a functional requirement for most positions. Despite the best planning and the availability of many scholarships and grants to support higher education, student loan borrowing may be a necessity and can leave students in significant debt.
If you are struggling to make payments for your student loans or other financial obligations then it may be appropriate to consider filing for bankruptcy protection. Although student loan debt cannot be discharged by bankruptcy, other kinds of debt can be forgiven and bankruptcy can help to grant you more time to repay your student loans. Contact the Birmingham bankruptcy lawyers of Greenway Law, L.L.C., at (205) 324-4000 to speak with a skilled and experienced attorney about your situation.
Four Types of Loan Repayment Plans
When you accepted your student loans, you agreed to the terms of repayment with the expectation that you would be gainfully employed and equipped to submit payments pursuant to your contractual arrangement upon the completion of your studies. As you may now have discovered, however, the economic reality may be different than you had imagined, and unexpected issues may complicate your ability to satisfy this obligation. In recognition of this, there are several different federal loan repayment options, including the following:
- Standard repayment, which requires payments each month to completely repay the debt within 10 years
- Extended repayment, which grants up to 25 years to repay the debt, and under which the monthly payment amount may increase over time
- Income sensitive repayment, which calibrates the amount of your monthly payments based on the number of members of your household and your income
- Graduated repayment, under which you will make monthly payments over 10 years, the amount of which increases each 2 years throughout the period
To learn more about your legal rights and how bankruptcy can help you to gain control of your financial situation, contact the Birmingham bankruptcy lawyers of Greenway Law, L.L.C., at (205) 324-4000.