Most students do not realize how cumbersome the burden of student loan debt is until several years after they have taken out the loans to finance their education. Most student loan borrowers are uninformed of the exact nature of the monthly payments that will be requested shortly after the borrowers graduate or of the effects the lingering debt may have on their ability to obtain a mortgage loan. For many graduates who finance their education, the receipt of a diploma is often immediately followed by demands for repayment by loan servicers. Borrowers are frequently shocked to learn how high the monthly payment demands are on their student loans and many are unequipped to make those monthly payments. Student loans leave borrowers with a high debt ratio that may even prevent them from being able to purchase a home.
Unfortunately, most borrowers have no idea what type of damage they are potentially causing by taking out student loans to finance their education until that damage has already occurred. The contracts for student loans are unlikely to specify an exact repayment schedule depicting how high the loan servicer’s individual monthly payment amounts will be. According to John Sandman with Main Street News, data from a voluntary survey indicates that more than half of borrowers with student loan debt are also uninformed of the penalties of default and what collection methods are available to loan servicers. Read the full article here. Failure to make student loan payments in full and on time can result in wage garnishment or in the government withholding the borrower and/or the borrower’s spouse’s tax returns.
Because certain laws prohibit student loan debt from being discharged through bankruptcy, oftentimes the damage of student loans is irreversible. Borrowers are stuck with their student loan debt until it is either paid off in full or forgiven through a repayment program. In order to be forgiven through a repayment plan, borrowers generally are required to make every payment in full and on time for a specified period. The durational period varies but usually is not less than ten (10) years. This makes forgiveness of student loan debt very difficult for the average borrower to achieve.
Borrowers who are struggling to make their monthly payments are encouraged to seek advice from Student Loan Law Group. Student Loan Law Group consists of licensed attorneys who are extremely knowledgeable in the laws relating to student loan debt. Student Loan Law Group assists borrowers in lowering their monthly payments, consolidating their student loans, and negotiating with loan servicers. Student Loan Law Group informs borrowers’ of their rights and also helps them protect those rights.
