Federal Student Loan Repayment Plans
Many students in America must seek various forms of financial aid in order to afford higher education. With the rising costs of public and private university tuition, relying only on scholarship or grant money is often not enough. The loans with the best interest rates and repayment options are typically federal student loans such as the Stafford subsidized and unsubsidized loans. When the student graduates or leaves school and must begin making payments, he or she will usually have from 10 to 25 years to pay back the loan. This time period of repayment depends on which repayment option the borrower chooses.
For many students, salaries earned after graduation are not enough to cover bills as well as loan payments. More and more recent grads find themselves in tough financial situations and need relief. While bankruptcy typically cannot result in the discharge of federal student loans, it could provide the financial relief you need to get back on track. Contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800 to find out if bankruptcy is right for you.
Types of Federal Student Loan Repayment Plans
There are a number of repayment plans that borrowers can choose from that could make loan payments more manageable on an immediate or long-term basis. These plans include:
- Standard repayment
- Extended repayment
- Graduated repayment
- Income-based repayment
- Income-contingent repayment
- Income-sensitive repayment on FFEL loans
For some borrowers who have other outstanding debts, these repayment plans do not provide sufficient financial help to stay above water. In these cases, filing for bankruptcy could be the right choice.
Contact Us
If you are facing overwhelming financial difficulties, you deserve to get the help you need. Contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A., at 561-353-2800 to discuss your case with an experienced legal representative, free of charge. Through Chapter 7 or 13 bankruptcy, your debts could be reorganized or even eliminated.
