There are many common misconceptions concerning student loan repayments, so if you do not fully understand your options, know that you are not alone. When the time comes to repay the loans you took out for school, you may be unaware about the best course of action in your specific situation. Contacting an experienced student loan lawyer in West Palm Beach can help you decide on the best path to choose moving forward. Below are three common myths regarding student loan repayments.
Myth #1: Lenders are not flexible.
The truth is, lenders are usually on your side, and often willing to help you choose the proper repayment plan. If you qualify for forbearance or deferment, lenders can also help you postpone your loan repayment. In the event that you have trouble making a loan payment, contact your lender and see what advice or assistance they can give.
Myth #2: Filing for bankruptcy will automatically relinquish my student loans.
In most Chapter 7 and Chapter 13 bankruptcy cases, borrowers will not be able to discharge their student loan debts. If your case is deemed to fall under the category of “unique financial hardship,” however, it might be possible. Unique financial hardship is usually determined by the court using the Brunner test or the “totality of circumstances” test. Students should know that there are many flexible payment options that they can take advantage of, and that bankruptcy is not always the best choice.
Myth #3: It costs money to consolidate my loans or change my repayment plan.
Changing repayment plans or consolidating loans are free services offered to borrowers. However, consolidating loans is not always recommended, especially those that came from the Federal Family Education Loan program, because students risk losing some of the benefits. In order to get the best advice, borrowers should contact the financial aid office of the institution they attended, or get in contact with the servicer of their loan.
If you are one of the many people struggling with student loan debt, Kelley & Fulton wants to help. We invite you to contact an experienced student loan lawyer in West Palm Beach and let us help you embark on the most efficient path to a more stable financial future.