St. Clair Shores Student Debt Relief Lawyer

Representing Clients in Macomb, Wayne, St Clair & Sanilac Counties

Many individuals have financed their way through advanced education with federal and private student loans. Whether due to the recent pandemic, inability to find or sustain employment in the job market, unpredicted illness or injury putting you out of work, or other reasons, you may have found yourself unable to make payments on your educational loan. Going into default on your student loan can have serious consequences, including a hit to your credit score and potential collection agency action.

If you are having difficulty paying your student loan, you need to take action to avoid the negative consequences that can eventually follow. Fortunately, solutions are available that can be taken to help you through your financial crisis. At Joseph L. Grima & Associates P.C., we focus exclusively on providing debt relief action for overwhelmed consumers. With 30 years and thousands of satisfied clients behind us, we have the knowledge, tools, and dedication to service that you need. 

Unable to pay on your student loan? Get help from our St. Clair Shores student debt relief attorney by calling our office at (313) 385-4076 or submitting your request online. Your initial consultation is free. 

Student Loan Debt Relief

Due to COVID-19, federal student loan forbearance has been extended by the government through January 31, 2022. This pauses required payments and gives you added breathing room to get your financial house in order. However, the Department of Education has announced that this will be the last extension. It does not apply to those with private student loans. This means that, if you believe you still will be unable to make your student loan payments, you should prepare to find solutions that will help you in the coming years to avoid going into default. 

Those solutions can include:

• Income-driven repayment plans. These are offered by the federal government for federal student loans. They give you the option of lowering your monthly bills depending on your income and family size. They may reduce your payment to nothing if you are unemployed or if your earnings are less than a certain level.
• Public Service Loan Forgiveness. This federal program discharges your debt after making 10 years of payments in a service-related capacity, such as the military, firefighting, nursing, teaching, or in government.
• Forbearance programs through your lender. Once the current pause ends, you may seek standard forbearance relief that gives you up to 12 months of relief. However, interest accrues on your loan.
• Deferment programs. These can defer payment as long as you qualify, such as through unemployment.
• Refinancing. This option is available to those with both federal and private loans. Through a refinance, monthly payments may be reduced or balances paid off faster.

Student loans generally are not available to be included in a bankruptcy filing. However, under specified circumstances, you may have this option. In order to pursue the discharge of your student loan, you will need to file an “adversary proceeding” and demonstrate that paying off your student loan would cause undue hardship on both you and your dependents. No single factor has been established to define “undue hardship” in these cases. Rather the court will look at various factors. These may include the potential for being forced into a poverty standard of living which would continue for a long time. However, your success is not guaranteed and the court has the discretion to discharge only a portion of your debt or none at all.