If you went to a private college, enrolled with a for-profit program, or even went out of state, you probably had to take out private student loans from a bank or other loan provider, like Navient or SoFi, to pay for the higher tuition and fees. After you left college, the bills started coming due, and now you’re struggling to make the payments. This isn’t uncommon, and while we’ve explored student loan forgiveness options for federal loans, we wanted to take the opportunity to see if private student loan forgiveness is available. Learn about your options and how you can take steps toward getting out from under debt.
Federal student loans are issued by the U.S. Department of Education, and there are programs, such as the Public Service Loan Forgiveness Program, that will forgive federal loans after a certain time. Private loans are issued by banks and individual companies without federal backing, so these institutions don’t offer forgiveness incentives or programs. Typically, the only times a private student loan is forgiven is when the holder dies or shows proof of permanent disability.
The good news is there are programs and options available to aid in paying back student loans.
In Florida, there are programs for people in specific careers to help them pay off student loans:
In order to compete for or retain top talent, employers are assisting employees with their student loan payments and paying them off up to a certain amount. Estee Lauder, Hulu, and Carvana are just three companies that offer these services.
While private lenders don’t offer income-driven repayment or loan forgiveness, they do want to prevent delinquency or default so they may offer forbearance that will defer payments under certain circumstances. The loans will still accrue interest, but it does provide an opportunity to pay off other debts, rearrange your finances, or increase your income while staying in good standing with the lender.
While federal student loans are very difficult to discharge during bankruptcy, private student loans are a bit different. Federal loans offer income-driven repayment plans, forbearance, and forgiveness programs, while private lenders do not. Thus, if you can prove you meet the undue hardship standard required, you may be able to get out from under your debt. However, you will most likely need to file a separate bankruptcy proceeding in order for a judge to determine if your private loans can be discharged.
If you are struggling to pay off your private student loans or can’t make the payments, bankruptcy may be the right option for you. It can also help you get out from under medical bills, credit card debt, and other financial challenges you’re facing. To learn about your options, schedule a free consultation with Stiberman Law today by calling [phone] or filling out the form below to get started.
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