Would you be surprised if I told you that federal and state law contain twenty-nine (29) available strategies which can offer you extra time to prevent default or, in many cases, relief from full payment. While not every strategy works for every type of student loan, the law provides predictable and substantial relief for those who know where to look in Title 34 of the Code of Federal Regulations:
- Section 682.209(h) allows you to reverse (cure) a defaulted federal student loan even if you have not paid in years and roll into an affordable payment plan for less than a 100% payoff, and based on your disposable income
- Section 682.405 allows you to cure a default at a reduced payment based on your disposable income, with the default reference removed from your credit report
- Section 1078(b)(9)(A)(ii) allows you to roll your student loan balance (once you are out of default) into a graduated payment plan that starts low and steps up every two years
- Section 685.219 allows public service employees to pay off their outstanding loan balances at reduced payments and a shorter payoff term – if they file the correct paperwork
- Section 682.216 allows certain math or science teachers to chop up to $17,500 from their student loan balances, while reducing their monthly payments – if you fill out the right form and submit required documentation
- These are just a few examples of special student loan reduction programs available to most student loan debtors, even though most people are unaware that these programs exist.
Student Loans are the Next Debt Tsunami
The New York Times reports that in 2011 the total amount of student loan debt owed by Americans eclipsed outstanding credit card debt. The Consumer Financial Protection Bureau (a federal government agency) states that in 2013, student loan debt has topped $1.2 trillion1, and 65% of that debt is either delinquent or in default.
About 93% of outstanding student loan debt is owed to the federal government – either directly or through guarantees. And with Washington in need of cash, student loan debt collection is increasing.
Fewer than 2% of Student Loan Debtors Take Advantage of Legal Student Loan Relief Programs
Currently, the U.S. Department of Education estimates that Americans owe on 36 million loans. No more than 500,000 of these loans are participating in available reduction or restructuring programs. There are many reasons for this lack of participation. For one, the government does a poor job of publicizing these options. And second, the rules are confusing – some programs work for certain types of loans but not for others, and the rules for the various programs are regularly changed.
How my Law Firm can Help You
If you have read this far, I am going to assume that you either have a student loan that you are struggling to pay, or you are delinquent and are facing administrative (non-judicial) wage garnishment or seizure of your tax refund or Social Security check.
My law firm’s student loan practice offers two (2) options:
Review of Client Generated Repayment plan ($150) – as discussed in this video, most of the calls I get are from men and women who are looking for repayment options for federally issued or guaranteed student loans. The Department of Education website includes a repayment calculator and a comprehensive walk-thorough of starting or getting back into compliance with an income based repayment plan. If you have gone through all of the necessary steps for an income based repayment plan but have questions, you can hire me to help you get over the finish line. Click here to pay $150 via PayPal.
Debt Analysis and Advice About How to Proceed ($200) – if the entire student loan workout process makes no sense or if you have an unusual situation that does not fit neatly into a category, you can hire me to review all of your options. I discount the first hour to $200. Subsequent hours are $300 per hour. Click here to pay $200 via PayPal.
I no longer offer free consultations for student loan work.
Who is Jonathan Ginsberg and Ginsberg Law Offices?
Obviously before you hire a lawyer you should do your research to learn more about that lawyer and law firm. The About Us section of this web site goes into detail but briefly, I have been in private law practice for 27 years in the Atlanta area, concentrating on consumer bankruptcy and Social Security disability issues. I have published the Atlanta bankruptcy law blog since 2005 and a Social Security disability blog and a disability podcast since 2005. I am a founding member of the Bankruptcy Law Network and every year I teach continuing legal education seminars for both bankruptcy and Social Security disability. I have also published two “how to” books about the Social Security disability claims process (another confusing, rule based area of the law).
If you look at my web sites and blogs, you will see that I am a big believer in providing clients and potential clients with a lot of information. I think it is silly that useful and money saving information like the student loan payment plan programs discussed on this site are so hard to find and understand, but they are. If I can offer my clients a little peace of mind and financial security at a reasonable cost, then I am doing what lawyers are supposed to do.
So, if you would like to talk to me about the options available to you regarding your student loans, please feel free to call email me using the form on this page. I hope to hear from you soon.
Latest posts by Jonathan Ginsberg (see all)
- What Can I Do About Private Student Loan Debt? - February 23, 2015
- Student Loan Workout Should Precede IRS Workout (Usually) - December 15, 2014
- Loan Modification Help on the Horizon for Private Student Loan Borrowers? - November 21, 2014