Student loan repayment plans have many borrowers struggling to meet monthly payments and other living expenses. According to the National Consumer Law Center, 63% of Navient borrowers in Income-Driven Repayment Plans (IDR) can’t pay back a single dollar on their principal balance. Many borrowers also wonder what steps they should take following the Biden-Harris Administration’s proposal to partially or completely forgive some student loans.

If you are struggling with student loans in Texas, speak to a debt resolution attorney with Ciment Law Firm, PLLC, THE Debt Defenders, about which student loan assistance options may apply to you. While discharge should be your last option, it could also be the only option if you received a private loan for your education. Read on to learn more about Texas student loan repayment, forgiveness, and discharges.

Some Programs for Student Loan Repayment May Lead to Loan Forgiveness

Borrowers have several options to manage their student loan repayment through programs incorporating elements of loan forgiveness. Most programs require regular payments for a set duration before forgiving the loan balance under certain conditions.

Public Service Loan Forgiveness

Nonprofit or government employees can have loans forgiven through the Public Service Loan Forgiveness Program (PSLF) if they satisfy specific requirements. Qualifying applicants must make 120 loan payments to be eligible for forgiveness of their remaining federal student loan balance.

The Department of Education approved a waiver that will expire on October 31, 2022, for Perkins Loans and Federal Family Education Loans to qualify for PSLF. Non-profit or government employees with these types of loans will no longer qualify after this date.

Income-Based Repayment

Income-Based Repayment (IBR) is one of several income-driven repayment plans available for student loan borrowers. An IBR will create a 25-year student loan repayment plan and forgive the remaining balance at the end of your repayment term.

An IBR caps your payment requirement based on income and when you took out your loan. An experienced debt resolution lawyer can help determine if you are eligible to apply.

Other Repayment Programs Incorporating Partial Loan Forgiveness

Many other loan forgiveness programs help borrowers across different fields and income ranges to qualify for low repayment plans and partial debt forgiveness. A debt resolution attorney can compare your situation to the eligibility requirements for:

• Pay-as-you-earn (PAYE) repayment
• Income-contingent repayment (ICR)
• NURSE Corps repayment program
• Teacher Loan Forgiveness
• Faculty loan repayment program (healthcare)

Determining Whether You Qualify for Proposed Loan Forgiveness of up to $10,000 for Federal Student Loan Borrowers, or up to $20,000 for Pell Grant Recipients

The Biden-Harris Administration has announced a plan to forgive up to $10,000 of student loans for borrowers with an income up to $125,000 per year while also forgiving up to an additional $10,000 for borrowers who received a Pell Grant. The deadline to apply is December 31, 2023.

This new process has not yet opened at the time of writing, but it is an avenue that may be available to forgive up to either $10,000 or $20,000 of your student loan debt, depending on the details of your loans. Speak to an experienced debt resolution attorney to discuss how this announcement may apply to you.

Do You Qualify for Discharge of Your Student Loans?

Another important means of student loan assistance is the discharge of a federal or private loan. A judge can award student loan discharge for precise and limited reasons:

• Identity theft
• Permanent disability or death
• Student not eligible to apply for the loan
• Unauthorized contracting of the loan by an educational institution
• Withdrawal from the school failed to trigger a refund to student loan servicers
• Closure of the school during enrollment

You may also be able to discharge the loan through bankruptcy, but you must prove:

• The loan repayment prevents you from maintaining a minimum standard of living and causes undue hardship
• The circumstances leading to the hardship are unlikely to resolve over the loan repayment period
• You made every effort to repay the loan while managing these challenges

Can a Debt Resolution Attorney Help Me Find Student Loan Assistance?

Your debt resolution lawyer can help you determine whether student loan forgiveness, discharge, or bankruptcy can help you with debt relief from your student loans. Suppose you have already defaulted on a student loan. In that case, your attorney can help you with loan rehabilitation, a 10-month income-based program to assess your debt, continue repayment, and remove the default record from your credit report.

You may also consider loan consolidation to get out of default sooner, although the default will stay on your credit report.

At Ciment Law Firm, PLLC, THE Debt Defenders, we offer student loan assistance to help borrowers get back to the life they enjoyed before their student debt took over. Our debt resolution attorneys will:

• Perform a Federal Student Loan Analysis
• Communicate with your creditors on your behalf
• Explain your rights as a borrower so you can manage your debt appropriately
• Help you with defaulted loans
• Manage and file legal documents
• Review repayment plans to help you manage your finances
• Fight to reclaim bank garnishments
• Represent you in court to defend against creditor lawsuits

Our proven three-step plan to pursue debt relief includes strategies to help you resolve your debts, protect your rights, and rebuild your credit.

Contact Ciment Law Firm, PLLC., THE Debt Defenders, for Student Loan Assistance from a Texas Debt Resolution Attorney

We practice debt resolution, consumer protection, debt collection defense, and bankruptcy law at our law firm in Katy, TX. We have represented Texans across the state for over 15 years against liens, debt collectors, wage garnishments, and more.

For student loan assistance in Texas, call us today at (833) 779-9993 or fill out the form on our website to schedule your free consultation and discuss a strategy for your student loan debt with our experienced team at the Ciment Law Firm, PLLC, The Debt Defenders. No matter your debt issue, we have an option for you.

Copyright © 2022. Ciment Law Firm PLLC. All rights reserved.

The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.

Ciment Law Firm, PLLC
221 Bella Katy Dr
Katy, TX 77494
(833) 779-9993
https://www.cimentlawfirm.com/