Is Less Important Than What You Know
your student loan. It's more important
than your mortgage, car and credit card
payments. You cannot discharge student
loan debt in the majority of cases."
-- Suze Orman, personal finance expert
the cost of a college degree has increased
at a much higher rate than the consumer
price index. In fact, since 1985, overall
consumer prices have increased at a
rate of 115 percent, while the price of
pursuing a college degree has risen
by almost 500 percent in the same
period. ("College Costs Out of Control,"
Steve Odland, March 24, 2012, former
chairman and CEO of Office Depot, Inc.,
and Autozone, Inc., and adjunct professor
at Lynn University)
In response to the runaway costs
of earning a college degree, students
and families are resorting to student
loans as a primary means to pay for
undergraduate and graduate degrees.
The result is that each graduating class
finds it owes more in student loan debt
than prior classes. For example, in 2014,
the average student graduated with
a student debt load of approximately
$33,000, while students from the class
of 2015 incurred an average of $35,000
in student debt. ("Class of 2015 has the
most student debt in U.S. history," Jillian
Berman, Market Watch, May 9, 2015)
The good news is when it comes to
repaying student loan debt, the amount
you owe is less important than what you
know. Given the variety of income-based
repayment and loan forgiveness options
available for federal student loans, both
parents and students would be wise to
research available options or get in touch
with an attorney specializing in student
loan debt.
options and loan forgiveness programs is
the National Student Loan Data System,
which is the central database for student
aid run by the U.S. Department of
Education. To reach the site, go to
nslds.ed.gov, where you will be prompted
to enter a username and password. This
will allow you to access information
concerning your federal student loans.
You will be able to determine the types
of loans you have, e.g. Perkins Loans,
William D. Ford Direct Loans, Stafford,
or Federal Family Education Loans
(FFEL) to name a few. The website will
also identify the lender and servicer for
your loan(s), the account balance(s), and
whether you have consolidated some
or all of your loans. The loan servicer
information is important because that
is who you will want to contact to
discuss consolidation and income-based
repayment plans. Please note, if you log
onto the website and do not see loan
information, it means you likely have
private or state-issued student loans. In
that case, you will need to contact your
private lender or state entity to discuss
potential repayment or forgiveness
options.
Whether your federal student loans
qualify for an income-based repayment
plan depends on the status of your loan.
If your loan is in default and/or you have
an active wage garnishment, you will
not be able to consolidate your loans or
enter into a repayment plan. To fix this
problem, you need to rehabilitate your
loan, which can be done by contacting
member of The Sader Law Firm. He focuses
on consumer and business bankruptcy law,
student loan relief, commercial real estate and
commercial litigation. He assists consumer and
commercial debtors with various debt relief
strategies and remedies.
The Sader Law Firm whose practice primarily
focuses on civil litigation, bankruptcy litigation,
student loan debt relief, consumer protection
and consumer bankruptcy.
2345 Grand Blvd., Suite 2150
Kansas City, Missouri 64108
mwambolt@saderlawfirm.com
saderlawfirm.com