Student loan debt cripples many student loan borrowers, including recent graduates. Many leave college with thousands of dollars in student loans. Even with a steady job, it can be difficult to meet student loan repayment obligations. Others struggle for years in an attempt to manage the student loan debt.
Attorney D.J. Rausa is committed to helping clients develop a payment plan they can manage. He can also determine if a student loan might cause the debtor "undue hardship." This can be used as an exception to the student loan repayment requirements.
In San Diego, attorney D.J. Rausa helps clients obtain relief from student loan debt. He has more than 20 years of experience. He is committed to making sure everyone has a chance to obtain student loan debt relief. Contact us for help addressing your student loan concerns.
Types of Student Loan Debt
Students may have received federal student loans or loans from private companies – many students use a combination of both to get through school.
Many students have also turned to parents, grandparents or others to either take out the loan or co-sign for it. Either way, this makes the parent a student loan borrower.
Federal Student Loans:
Because so many students have gotten in over their heads with excessive student loan debt, the federal government has developed a whole host of options available to address Federal Student Loans. These types of loans are subject to programs offered by the U.S. Department of Education.
To find out what Federal Student Loans you have, go to the National Student Loan Data System, www.nslds.ed.gov, to get your report. This report contains vital information in evaluating what the next step will be to address your Federal Student Loans. If a student loan is not on this report, chances are the loan is a private student loan.
Once this information is reviewed, Attorney D.J. Rausa will be able to determine what the best options are.
Private Student Loans:
Private Student Loans are NOT subject to any Federal Student Loan Program. Therefore, they have to be addressed in a completely different manner.
Options for Private Student Loans are very limited, however Attorney D.J. Rausa may be able to negotiate favorable terms of repayment. The factors widely vary from lender, servicer, and collection agency. Therefore the results also vary.
If favorable terms cannot be reached, then a Chapter 13 Bankruptcy is an option that can be exercised to force the Private Student Loan lenders to accept an affordable payment.
Bankruptcy and Student Loans
There is a common misperception that once you take out a student loan, you are obligated to pay it all back no matter what. This is not entirely true. While some student loan debt may not be discharged through bankruptcy, The Law Offices of D.J. Rausa may have ideas to help you reduce or discharge your debt.
However, it is important to note that the process of discharging student loan debt differs from the process of discharging other types of debt and will require a detailed analysis of the type of student loan as well as the history of the loans.
Student loan debts are not automatically discharged through Chapter 7 bankruptcy. The Chapter 13 bankruptcy process can be used to restructure your student loans into a more manageable monthly payment. Attorney Rausa offers comprehensive Chapter 13 bankruptcy solutions to help you set up a payment plan to pay down your debt, including your student loans.
Chapter 13 repayment plan can last for as long as five years. Attorney Rausa will develop a feasible plan for you in order that some percentage of all your debt is paid. During the pendency of your case, you will be protected from any and all collection activity; this includes the IRS and any student loan collection agencies or servicers.
Discharging Student Loans: Proving Undue Hardship
Sometimes student loans can be forgiven when the borrower is shown to have endured “undue hardship,” such as:
- Disability preventing your ability to work
- Fixed income with no possibility of a salary increase
- Family issues preventing you from earning a living
- Totality of your financial circumstances
Attorney Rausa is prepared to address all of your questions regarding undue hardship.
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Contact a San Diego Lawyer
Contact us by e-mail or call toll free at (619)295-3322 to see if you qualify for the hardship exception, or if reorganizing your payment plan is a better option. A free initial consultation is available with an experienced San Diego student loan debt relief lawyer.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.