COTNER LAW OFFICES
Do you have Student Loans in Michigan?
Contact Michigan Student Loan Lawyers today. We can help you:
-
Stop Wage Garnishment
-
Recover from Tax Intercepts
-
Handle student loans in default
-
Change student laon repayment plans
-
Consolidate or defer
-
Determine your best debt relief option
Federal Student Loan Repayment Plans in Michigan
Thousands of Michigan students take out federal student loans to help pay for their college education every year. Chances are, when your loans were funded, your plans included graduating, getting a job, and paying off your loans. Then, six months after you left school or graduated, the bills started arriving.
Fast-forward to today.
Now, your finances are tight because you’re unemployed or underemployed and COVID-19 added another complication to the whole situation. If you’re making the default payments that your servicer assigned, you may have nothing left for the down payment on a home or car. If you’ve had enough and are tired of not gaining any ground, it’s time to act.
One of the first steps in the student loan analysis is to determine whether you are dealing with federal or private student loans.
Private vs. Federal Student Loans
Private Student Loans
Private loans are offered by private institutions, such as College Ave, Sallie Mae and Ascent. The lender may collect the debt directly or hire a collection agency.
They may also report the default to a credit reporting agency which may lower your credit score. If you have a co-signer on your loan or have been served with a lawsuit, you likely have private student loans.
Federal Student Loans
Federal student loans are backed and regulated by the United States government. They include:
- Direct loans
- Perkins Loans
- PLUS loans
- FFELP Stafford Loans (subsidized and unsubsidized)
If you have not made payments for at least 270 days, your federal student loans may have gone into default. If collection agencies have contacted you, they may ask you to consolidate or rehabilitate your loans. You may receive notice of administrative wage garnishment, even if you were never served with a lawsuit.
Contact Michigan Student Loan Lawyers Today!
Thankfully, there are options that can help you handle overwhelming student loan debt. In many cases, a Michigan Student Loan Lawyer can help with student loans in default. If they have not gone into default yet, we might stop them from affecting your credit or your paycheck. We can assess your case and help you determine if changing your student loan repayment plan or other alternatives can help you the most.
Student Loan Repayment Plans
If you didn’t talk with your student loan servicer at least 45 days before the first payment was due, you are on the standard repayment plan. This takes all of your student loans and interest, totals them, then divides the sum into monthly installments lasting 10 years (120 payments). For example, your student loan payments will be about $670 a month if you have $80,000 in loans, depending on interest rates.
If you are underemployed, not working at all or have significant debt, such as medical bills, meeting this monthly requirement may be not be possible.
Repayment Plans
Based on your situation, we can move you from the standard payment plant to one of the repayment options that could reduce your monthly payments, giving you some much needed breathing room. Student loan repayment plans include:
- Income-Contingent Repayment Plan (ICR)
- Income-Sensitive Repayment Plan
- Income-Based Repayment Plan (IBR)
- Extended Repayment Plan
- Graduated Repayment Plan
- Pay as You Earn Repayment Plan (PAYE)
- Revised Pay as You Earn Repayment Plan (REPAYE)
It’s Not Too Late to Get Help with Your Student Loans in Michigan
Even if your student loans are in default or your wages are garnished, you still have options. Handle it by contacting Michigan Student Loan Lawyers and get non-bankruptcy or bankruptcy debt relief.
Some repayment plans increase payments gradually, regardless of the future, while others allow for a payment that adjusts as your income adjusts. For individuals on these plans, income is re-verified and evaluated each year. Michigan Student Loan Lawyers can help you understand the immediate impact and long-term implications of each plan and how it affects your goals. Together, we can work through the options and decide which plan works best for you. We can help you complete and file the paperwork as needed.
Student Loan Debt Relief Options
Get a student loan analysis from Michigan Student Loan Lawyers
The plan that’s right for you depends on your unique circumstances. Contact us today to learn more and take back control of your finances.
Consolidation
If you signed financial paperwork each year you were in school, you likely took out multiple loans and they might have different interest rates. As a result, you may be making several payments each month for a different amount. A direct consolidation loan combines your federal student loans into one payment, instead of several. Benefits include:
- Simplifying your monthly payment requirements
- Switching from variable rate to fixed rate interest
- Allowing you to qualify for repayment plans and forgiveness programs
- Giving you a longer time to repay your debt
There are 20 different types of federal student loans that you can consolidate. They include nursing student loans, Direct PLUS loans, and parent loans for undergraduate students. We can go over your options and find out if you qualify for a student loan repayment plan that lowers your monthly payment.
Deferment and Modification
Lenders for federal programs must offer deferment options to borrowers who can prove hardship. If you are eligible, student loan deferment gives you time to get your finances in order and restart regular payments after a few (or several) months. This option may sound great, but it might have a strong, negative affect on your loans.
These lenders are also required to give borrowers the opportunity to negotiate their repayment plans at least one per year. You might be able to extend the loan repayment period, which may reduce your monthly payment amount significantly. Some plans allow you to extend the payments up to 25 years. Other options allow for flexible payment amounts, based on your gross annual income. Ask us about which student loan repayment plans you may qualify for and how to negotiate for a more practical payment schedule.
Forgiveness
The federal government may forgive some or all of your student loans depending on various factors, such as your circumstances, the school you attended and current career path. Some of the most common types of student loan forgiveness include:
- Discharge of loans for students who attended a school that closed while they attended, or shortly after
- Disability discharge
- Forgiveness for public service employees
- Forgiveness for teachers
Other forgiveness programs may be available to you. Contact us or call 616-846-7153 to learn more about student loan forgiveness programs and discuss your options.
Rehabilitation
Rehabilitation helps you get back on track if you have defaulted on your federal student loans. We can work with the servicer and negotiate on your behalf. Once rehabbed, we can consolidate the loans and get you into a repayment plan. This can reduce the amount of monthly payments, give you some breathing room and allow you to take back control of your finances.
Bankruptcy
Historically, student loans were exempt under the bankruptcy code unless the borrower could prove they would suffer “undue hardship” if they continued paying their loans. However, bankruptcy courts have relaxed the standards for undue hardship in recent years. Depending on your circumstances, you may qualify for student loan discharge in bankruptcy. We can help you determine if Chapter 7 can help you reclaim financial stability and get your life back on track.
Contact Michigan Student Loan Lawyers Today
Student loan law is a specialized niche, with complex requirements. We have the training and experience to help you get back on track with your student loans in Michigan, so call us today!
