Student Loan Solutions Queens

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Student Loan Lawyers Negotiating and Resolving Student Loan Debt

• Introduction
• Federal Student Loans:
• Federal Student Loan Coronavirus Update:
• Federal Student Loan Options:
• Income Based Repayment Plan:
• Private Student Loans:
• Summary of Private Student Loan Options:
• Refinancing Student Loans:
• Positives to Refinancing:
• Negatives to Refinancing:
• Student Loans Bankruptcy Options:
• Promising Student Loan Litigation:

Student Loan Summary:

Introduction:

“In this world nothing can be said to be certain, except death and taxes,” as Benjamin Franklin famously said. This phrase has recently been amended by popular opinion to include student loans. Since most jobs these days require a bachelor’s degree, the amount of debt that Americans owe on their student loans has skyrocketed to over $1.64 trillion in federal loans and $124.65 billion in private loans.$35,397 is the average amount of student loan debt held by an American. Therefore, you are not alone if you have student loans, and at least you are reading this summary and gradually looking into ways to reduce the amount of debt you have to pay back.

Federal and private student loans are the two categories of student loans. Student loans that are federally backed and subject to stringent federal oversight are known as federal loans. Private lenders lend money to students to cover the excess of their living and educational costs over what federal loans do not cover. This type of lending is known as private student loans.

Due to federal oversight, it is usually easier to find an affordable payment plan for federal loans. On the other hand, private loans have stricter terms and are more difficult to get with reasonable payment plans for long-term relief. To learn more about the various ways we can assist you with your student loans, please continue reading our Student Loans Summary.

Federal Student Loans:

In order to find a fair settlement for your student loans, our office can negotiate with your lenders on your behalf. It can be challenging and time-consuming to negotiate an affordable payment to manage your student loan debt, but our office has the expertise needed to get the options you desire.

Federal Student Loan Coronavirus Update: As of right now Federal Loans have been deferred with no payment due until after 09/30/20. If you current in a repayment plan, you may not have to pay but you should confirm this with your lender prior to choosing not to remit your student loan payments.

Federal Student Loan Options: We have and will continue to take students in default through modifying, rehabilitating, or consolidating federal student loa.

• Although it takes time to modify your current student loans, once done, you can usually lower your monthly payment by extending the loan’s current term.

• Students who have already fallen behind on their student loan repayment plan are eligible for the rehabilitation process. After your loan has been brought current through rehabilitation, which usually takes nine months, our office will continue to work with your lender to arrange a repayment schedule that suits your needs.

• Because there is now only one monthly payment due, consolidation usually lowers your payment and simplifies loan management. The only course of action available to you if you have already started a repayment plan but have fallen behind on it again is to consolidate your debts. This entails taking out a single loan with a single interest rate and only one monthly payment needed.

Income Based Repayment PlanIn order to help you make an affordable monthly payment, our office can work with your lender to arrange a repayment plan based on either your income alone or both your income and expenses. We can try to get you into an Income Based Repayment Plan if this is your first time applying for a better student loan repayment plan and you haven’t missed payments on a prior repayment plan.

The borrower’s payments under an income-based repayment plan (IBR) can vary according to their gross annual income from the previous year. You pay more if you earn more money, but you also pay less if you earn less. When it comes to federal student loans, this is a great, affordable option because the unpaid balance is forgiven after 240 payments or after remitting payments for 20 years. You might only be able to make a small monthly payment if you don’t have any income.month for your loans from the federal government. For a periodic legal fee, our office enrolls students in IBR and keeps these repayment plans going. This is because the benefits of this wise financial decision are irreversibly lost if you ever default.

Private Student Loans:

Our team can work with your lenders to come to an arrangement that will allow you to make a manageable monthly payment.

COVID-19 Update: Private loan payments are still due and have not been postponed as of yet, but you may request a deferment on a case-by-case basis. This would depend on your situation and whether COVID-19 has affected your ability to pay the bills on time.

Summary of Private Student Loan Options: Our office can help you get your private student loans out of default by assisting with loan modifications and consolidation. The aim of our office is to bring your loans current with a payment that works for you.

By altering your loan in a number of ways, we will try to reduce your monthly payment and make it more manageable. Your private investors’ ability to change the terms may be restricted as a result of their limitations. However, in order to provide you with a more manageable monthly payment, our office will describe your financial limitations, any exceptional circumstances, and utilize all available modification techniques. Lastly, our office can attempt to refinance your student loan on your behalf, subject to the credit requirements; for further details, refer to the Refinancing Section.

Refinancing Student Loans:

Our office can help you change the terms of your federal and private student loans to something more advantageous. Our office can try to refinance your loan on your behalf, regardless of whether you want lower interest rates, longer terms with lower monthly payments, or a shorter term to pay less interest over the course of the loan.

Positives to Refinancing:

1. SSaving Money: By lowering your interest rate, you may be able to reduce both the total amount repaid and your monthly payments.

• Changing the Repayment Terms: Basically, you can combine all of your student loans into one loan, making sure that the monthly payment is manageable. If interested, could also shorten the term to gradually pay less interest.

• Select a Lender: If you’re not satisfied with your present lender, you can select one here.

• No Down Payment Required: If credit is a concern, a down payment could facilitate the refinancing approval process. However, it is not necessary to make a down payment.

• Consolidation: Are you sick and weary of making several payments at various rates? We can combine all of your student loans into one by refinancing.

Negatives to Refinancing:

1. To be eligible for refinancing, you must have a credit score of at least 650; in certain cases, a co-signer may also be needed.

• The new lender who is refinancing your loan needs permission from your existing lender to release your loan.

Student Loans Bankruptcy Options:

Contrary to popular belief, student loans—both federal and private—can be negotiated and partially discharged through bankruptcy. To be eligible for an undue hardship discharge, you must be able to demonstrate the following:

1.  You won’t be able to pay for your essentials and keep up a minimal standard of living if you are required to pay back your student loans.

2.  Your hardship has occurred, or is expected to occur, during a substantial portion of the loan’s term.

3.  You have tried your hardest to pay back the loan.

Our office can present these mitigating and necessary circumstances in a Chapter 7 Bankruptcy to demonstrate that you are unable to pay back your student loans and that all or a portion of them ought to be discharged through bankruptcy.

Our office will create a plan in a Chapter 13 bankruptcy to settle your debts and lower your payments for the first five years of the plan. Once a plan is finished, these payments will probably go up, but you are able to reapply for a Chapter 13 plan as many times as necessary to pay off your student loans.

Beginning on January 27, 2020, borrowers in the Southern District of New York must participate in Student Loan Mediation with their lenders prior to pursuing student loan litigation through bankruptcy. whereby before students file a lawsuit over their student loans, lenders and borrowers must look for and discuss mutually agreeable repayment options. This new Southern District student loan procedure may eventually have a positive impact on how student loans are handled throughout the rest of New York and the New York Court of Appeals, even though it is not currently in place in the Eastern District of New York.

Promising Student Loan Litigation:

In Re Rosenberg, 610 B.R. 454 (2020) Summary:

Regarding: N.Y. State Higher Education Services Corp., et al., Defendants v. Kevin Jared Rosenberg, Plaintiff, 610 B.R. 454. In Rosenberg, the plaintiff—a self-represented lawyer—brought an adversary proceeding, claiming he was entitled to a discharge of his $221,385.49 consolidated student loan debt and “undue hardship.” Using the Brunner “undue hardship” standard, the court erased all of his student loan debt.

The court determined that the Plaintiff satisfied the first prong of the Brunner Test, which states that “if forced to repay your student loans, you will not be able to afford your basic necessities and maintain a minimal standard of living.” The Plaintiff’s monthly income and expenses were reviewed by the court. The plaintiff demonstrated his monthly income of -$1,548.74, and the court determined that he was unable to pay back the student loan and support a “minimal” standard of living due to this insufficient income.

“The circumstance causing your hardship is likely to occur during a significant part of your loan’s life” is the second prong of the Brunner Test. The Plaintiff’s situation was only taken into consideration by the court if it was expected to last “for a significant portion of the repayment period of the student loans.” In summary, the court determined that the plaintiff was in default, the loan was accelerated, and the repayment period had ended. The Plaintiff’s circumstances would probably persist for the duration of the loan, and the entire amount became due.

“The debtor made good faith efforts to repay the loans” is the third prong of the Brunner Test. In this case, the court determined that the plaintiff attempted to make payments in good faith. In the nearly thirteen years since the loan’s inception, the plaintiff has only missed sixteen payments. The loan payment history indicated that the plaintiff had been enrolled in an income-based repayment plan for more than a year. The Plaintiff did not just sit on his obligation to repay this loan; rather, he actively requested forbearance five times. In the end, the court determined that the plaintiff satisfied the Undue Burden test requirement.

The plaintiff’s move for summary judgment was granted, and the court ultimately determined that the plaintiff had satisfied the Brunner Test and that the student loan had caused an undue hardship.

Regarding student loans being discharged through an adversarial proceeding, this opinion represents the most recent case. The Defendant will probably vigorously challenge and appeal this ruling. The appellate court will probably determine after an appeal whether the district court of the second circuit erred in granting the motion for summary judgment as a matter of law. Going forward, the important question would be whether there is a legitimately contested matter of material fact. All things considered, the case represents a glimmer of hope in the world of student loans today, which is rife with financial hardship and hopelessness.