Student Loan Attorney Arizona: Why you need one
Are you feeling overwhelmed by your student loan debt? Are you struggling to make your monthly payments, or worried about falling behind on your loans? There are thousands of people right here in Maricopa County suffering from student loan debt.
9% of student loan borrowers in Arizona are 90+ days past due on payments, including federal and private loans. Luckily, you don’t have to face this alone.
Right here in Phoenix, people are getting relief from student loans, you can too! Gaudiosi Law can help you navigate the complex world of student loan debt and find a solution that works for you. We understand the emotional burden of student loan debt. We are passionate about helping our clients achieve financial freedom.
Who is a student loan lawyer?
A student loan lawyer is an attorney who specializes in legal issues related to student loans. They offer legal help to individuals having trouble with student loan debt. They also help those having problems with their student loan servicers.
A student loan attorney can help clients with a wide range of issues, including:
- Exploring options for loan repayment, such as loan consolidation or income-driven repayment plans.
- Negotiating with loan servicers to reduce interest rates or negotiate a payment plan.
- Defending clients in lawsuits brought by lenders or debt collectors.
- Filing complaints with regulatory agencies such as the Consumer Financial Protection Bureau (CFPB) or the Department of Education.
- Providing guidance on the legal implications of defaulting on student loans.
Student loan lawyers can also help borrowers understand their rights and responsibilities when it comes to their student loans and can provide guidance on strategies to manage and ultimately pay off their student loan debt.
Why you need a student loan lawyer
There are several reasons why students might need a student loan lawyer, including:
1. Difficulty with loan repayment:
Many students struggle to repay their student loans due to a variety of reasons such as job loss, disability, or unforeseen financial difficulties. A student loan lawyer can help negotiate with loan servicers to explore options for loan repayment such as loan consolidation, loan rehabilitation, or income-driven repayment plans.
2. Disputes with lenders or servicers:
Borrowers may have disputes with their lenders or loan servicers regarding loan terms, interest rates, or billing issues. A student loan lawyer can represent borrowers in these disputes and help them assert their legal rights.
3. Debt collection lawsuits:
In some cases, borrowers may face legal action from lenders or debt collectors seeking to collect on their student loans. A student loan lawyer can provide legal representation in these cases and help defend borrowers against unfair or illegal debt collection practices.
4. Student Loans Loan forgiveness or discharge:
In certain situations, borrowers may be eligible for student loan debt forgiveness or discharge, such as if they have a permanent disability or if their school closed while they were enrolled. A student loan lawyer can help borrowers understand their eligibility for these programs and guide them through the application process.
Overall, a student loan lawyer can provide valuable legal advice and representation to students who are struggling with their student loan debt or facing issues with their loan servicers or lenders.
Student loan forgiveness
Recently, the Biden Administration passed a sweeping referendum allowing some students to apply for student loan debt relief. The provisions include that the Department of Education will provide relief to Pell Grant borrowers of $20,000 while non-Pell Grant borrowers can expect to receive $10,000 of student loan debt cancellation.
FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most | The White House. The relief comes to individuals making less than $125,000 or $250,000 for married couples in annual income. Further, the Biden Administration will make additional efforts to streamline the student loan system and make it more manageable for borrowers to repay their loans. If you need help with student loan forgiveness, go to this website and fill out your application.
Additionally, the Biden Administration in conjunction with the Department of Education has provided billions of dollars in student debt relief to borrowers who have been defrauded or misled by their educational institutions. For example, the Department of Education has provided over $1.1 Billion of student loan debt relief to borrowers who attended ITT Technical Institute.
The school was found liable for defrauding its students whereby the school “engaged in widespread misrepresentations about the true state of its financial health and misled students into taking out unaffordable private loans that were allegedly portrayed as grant aid. ITT’s malfeasance drove its financial resources away from educating students in order to keep the school in business for years longer than it likely would otherwise have.”
In even more recent news, the Department of Education has agreed to settle a pending lawsuit, Sweet vs. Cardona whereby over 150 higher learning institutions may have student loans provided to over 200,000 borrowers to see relief totaling more than $6 Billion in student loans being discharged for these borrowers according to the settlement. The lawsuit has been given provisional approval and is set for more hearings in about a month. Assuming the lawsuit continues on its current track, these students will see their loans discharged and completely forgiven.
Student loan forgiveness lawyers
You might be eligible for student debt forgiveness if you have federal student loans; however, you need to meet certain requirements. A student loan forgiveness lawyer can ensure that you meet the requirements for loan forgiveness and help you find a good student loan repayment program.
As such, it is important to talk to an experienced student loan attorney near you that is familiar with the requirements of these loan forgiveness programs
Can I Discharge Student Loan Debt in Bankruptcy?
The short answer here is yes, but it’s very difficult and you must pass a stringent test in front of the court before your loans may be discharged in bankruptcy. There are generally four prongs to the test.
- You must show that prior to your bankruptcy filing, you could not maintain a minimal standard of living for yourself and your dependents if you were forced to repay your student loans.
This first prong means that prior to filing bankruptcy, your income and standard of living were such that you are under the Means Test for bankruptcy, making less money annually than that which is deemed a general standard of living.
- You must show that circumstances exist that making any future payments toward your student loans would be a hardship.
This Second prong indicates that if you were to continue attempting to make your student loans, those payments would continue to bring on hardship for you and your dependents, keeping you under the minimum standard of living.
- You must show that it is unlikely that you would ever be able to improve or substantially improve your standard of living during the repayment period for your student debt.
Generally, student loan repayment periods are ten years. The Department of Education has repayment plans for low-income borrowers which allow for payments up to twenty or twenty-five years. Therefore, under this prong, you must show that continued repayment of your student debt will ensure that your hardship continues throughout the repayment period.
- Finally, you must show that prior to your bankruptcy filing, you made a genuine good-faith effort to make payments for your loans or arranged a forbearance.
This last prong means that you were essentially working with the student loan services to either make your payments, pay on a low-income repayment plan, or arrange for the forbearance of your loans. If you simply stopped communicating with the loan servicer, then that could hinder your chances of getting a discharge of your student loan debt.
What Is the Process for Discharging My Student Loans in Bankruptcy?
To discharge your student loans in bankruptcy, you must do more than simply file your case. In a Chapter 7 bankruptcy, you must file either a Motion requesting the court to approve a discharge of your student loans, or even more typically, a filing of an adversary proceeding to request the discharge of your student loan debt.
The Department of Education recently settled a lawsuit, Sweet vs. Cardona, that will provide over $6 Billion in student loan relief for around 200,000 borrowers from over 150 higher education institutions. It is currently awaiting a final hearing, and if approved, the loans for these borrowers will be fully discharged.
The Department of Education recently agreed to settle a lawsuit, Sweet vs. Cardona, that would provide relief to over 200,000 borrowers from more than 150 higher learning institutions, with a total of $6 Billion of student loan debt being discharged. After provisional approval, hearings are scheduled in the upcoming month, and if all goes according to plan, those affected by the lawsuit will have their loans completely forgiven.
The Biden Administration is trying to simplify the student loan process and make it easier for borrowers to pay off their loans. Additionally, they have provided billions of dollars to those who have been wronged by their educational institutions. If you are in need of student loan forgiveness, the website offers an application to fill out.
There may be a hearing and a trial before the court eventually approves or denies your request. You may be asked to pay attorney fees if you lose to the opposing party. There is a risk involved in taking on a student loan servicer. You need an attorney to help you work through it.
Often, a settlement can be made whereby your student loan servicer agrees to allow the discharge of some portion of your student loan debt while you agree to pay some of the debt as well. In any event, you can discharge your student loans in bankruptcy, if you meet the conditions required by law for student loan discharge.
Student loan debt doesn’t have to be the end, let’s help you explore your options and find the best solutions. Contact a professional today!