Misconceptions About Bankruptcy And Student Debt

Misconceptions About Bankruptcy And Student Debt

If you have student debts or student loans there is a very good chance that you are in a position that is quite similar to other members of American citizens. It’s determined that the average college graduate back in the year 2016 had over $37,000 in student loans that had not been paid. This article will clear up some misconceptions about bankruptcy and student debt.

Repayment Plans

Most lenders are willing to work with recent graduates so that there can be very flexible repayment plans on the debt. What happens to many recent graduates is that they are absolutely unable to pay back the money that they borrowed, while they were in school. Many recent graduates also find themselves in need of other expenses like car payments, rent, and credit card payments. Many graduates find it tough to cover the cost of the student loans they often turn to bankruptcy to solve the problem.

Student Loans With Bankruptcy

A student loan can be removed but there have to be certain requirements met by the person filing for bankruptcy. A borrower has to have made an ongoing effort to pay down the student loan balance and they need to be able to prove that they are unable to meet the minimum standard for living while they are paying off the balance. If a person can prove that there would be a challenge in continuing to repay the loans principally for their foreseeable future, this can suggest that it is the optimal time for bankruptcy.

DischargingĀ 

If you are trying to pay down your student loans and you’d like to know more about discharging some of your balance with bankruptcy there are a few main steps that you’ll want to look into. Make sure that you have all of the ongoing records of your student loan back and make sure that you meet the terms of qualifications for the discharge. Keep in mind that you can also work at discharging loans for items like enrollment costs, registration fees, books, and tuition. For further information contact our law office today.