Student loans

Paying off your student loans can seem totally overwhelming, but it doesn’t have to be. We suggest visiting to get all the details.

How much do you owe?

You don’t have to take out a loan to pay off your student loans; you can get your loans canceled through your lender. Find the right lender for you, and keep in mind that there is no set payment for student loans. Check the interest rate, the payment terms and the debt forgiveness periods for the loans you’re considering, and come up with an agreement that’s good for both parties.

There are three ways to pay off your student loans:

Pay them off right away

If you’re working in an eligible position and don’t qualify for an income-based repayment plan, you can pay off your student loans using direct debit. However, your student loans will not be erased if you don’t make minimum payments on time. So, keep an eye on your payments! Get a full discharge (all the forgiven debt plus interest) To be eligible for a full discharge of your student or car loan for bad credit, you need to have your loan servicer give you an “option to discharge all or part of the debt, without regard to payments.” This means you will be able to request forgiveness of any remaining interest and a discharge of any remaining balance. In order to qualify for a full discharge, you need to: Be employed continuously since July 1, 2008.

Be making monthly payments on your loan. Not be in default on any federal student loans. File a voluntary bankruptcy, so that the remaining balance, including interest, is discharged in bankruptcy (as a part of the discharge, your federal loans are not discharged). If you have other student loans, you are eligible for forgiveness of any remaining balance, if your payment(s) are at least 15% of your discretionary income.

Repayment of an existing debt, if it has been consolidated Your loan is discharged after the debt is retired. The amount discharged depends on when you filed the bankruptcy, and how long ago you filed for bankruptcy. Once your loan has been discharged, you have a chance to refinance it, use the income from the new loan to pay other debts, and apply to the Department of Education for forgiveness.

Your loan may not discharge. Some loans, such as those on which you have been disbursed loan proceeds and loans for medical care, are excluded from discharge. See Chapter 7 of the Bankruptcy Code, Title 11, Section 453, as amended. If your student loan does not include a discharge option and you want to get one, you must apply for it with your loan servicer.






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