Student loan debt issues are becoming increasingly prevalent in the lives of the average consumer. Unsustainable student loan debt can negatively impact borrower’s lives in ways that we have not encountered before. Recent graduates are finding difficulty obtaining mortgages and in some cases delaying marriage and starting a family because of excessive debt. In a divorce proceeding, it can be difficult to determine how to deal with student loan debt.
The Student Loan Debt Crisis
This phenomenon is relatively recent. There are a number of developments that have contributed to the current student loan debt crisis:
- Reduced employment due to the recession is limiting opportunity and driving down wages
- Both public and private student loans have been made non-dischargeable in bankruptcy
- Colleges produce degree programs with seemingly little consideration of employability
- Tuition costs and fees are spiraling out of control
- For-profit colleges have run amok, aggressively recruiting young people for programs with limited employment opportunity that are heavily funded with private student loans
Student loan debt can lead to an additional layer of complications in divorce as well. Who should pay for what, and how should the debt be divided?
Our Attorneys can Help
While the situation may seem bleak, consumers still have options for dealing with student loan debt in a divorce. Here are some of the student loan issues that we can help you with:
- Default – What happens when you can’t pay anymore and what can you do about defaulted student loans?
- Repayment Programs – Find out about alternative repayment programs like income based and income contingent repayment.
- Student Loan Consolidation – Bring your loans out of default using Direct Loan Program consolidation loans.
- Loan Rehabilitation – You have a right to rehabilitate defaulted loans, find out more.
- Bankruptcy Discharge – You may qualify for a hardship discharge in bankruptcy.
- Forgiveness – In some cases, student loans can be forgiven.
- Private Loans – Dealing with private lenders can be difficult, find out about your options.
- Co-Signers – What are your rights as co-signer and how does your student loan affect co-signers.
- Financial Emergencies – How to obtain a forbearance in the event of job loss or injury.
- Debt Collections – Enforce you rights against student loan debt collectors using the various consumer protection statutes.
These are just some of the ways an attorney at Heimerl & Lammers can help you with your student loan issues. If you have questions about your student loans, call us today to schedule a free consultation – (612) 294-2200.