Did you know you may qualify for a student loan repayment plan that lowers your monthly payment?
Federal student loans have several options to assist people with paying them off. However, typically people are unaware of their student loan repayment plan options until they are in payment trouble. This is where a student loan lawyer can help. We can help you with a variety of legal issues caused by delinquency or default of your federal student loans, as well as:
- Stop wage garnishment,
- Assist in lowering monthly payments
- Determine if you qualify for forgiveness programs
Federal Student Loan Repayment Plans
There are nine different federal Student Loan Repayment Plans. Each one has a different payment calculation method and uses different logic to determine how they work. Several plans are based on income such as IDR, New IDR, ICR and IBR. Other options are balance-based. The plans are as follows:
- Standard Repayments
- Extended Repayments
- Graduated Repayments
- Extended Graduated Repayments
- Income-Based Repayments
- New Income-Based Repayments
- Income-Contingent Repayments
UPDATE FOR 2021: Depending on your industry, such as healthcare or education, there may be additional repayment plan options for you. Kevin Benjamin is our student loan lawyer in Chicago – contact us to learn more.
There are many variables you should consider when selecting which of the Student Loan Payment Plans you want. These variables include:
- How long has it been since departure from school?
- What are the current annual earnings?
- What is future earning potential?
- Are there significant purchases expected in the future like a house, wedding, etc.?
- What life-altering events are planned such as having children?
- What other financial responsibilities are there?
The answers to the above questions make a difference because some repayment plans put you on a gradually increasing payment regardless of future earnings growth. Other federal student Loan repayment plans dictate an amount that increases as your income increases. An annual review of income is required and evaluated.
Which Student Loan Repayment Plan is Right for Me?
When contemplating these options, we can help you understand the ramifications of each plan and any effects on short and long-term goals. Once we decide which program works best, we can complete the necessary documents, file them per procedure and help maintain the plan if yearly recertification is required.
There are more options for working with federal student loans which include:
- Forbearance and Deferment
- Defense to Repayment
- Federal Student Loan Consolidation
- Federal Student Loan Rehabilitation
Not all of the repayment plans are offered to everyone with some restricted to certain loans or can only be used once. Every program has a different impact on:
- Public Service Loan Forgiveness
- Teacher Forgiveness
- Administrative discharges
Need a Student Loan Lawyer in Chicago?
Contact us or call 312.853.3100 to schedule a consult with Kevin. He can asses your situation and help you get the right repayment plan. This can help you avoid a federal tax intercept and sidestep bankruptcy.