Student Loan debt repayment is an increasingly serious problem for not only the borrowers, but also for their employers. This is particularly true in the State of Ohio where schools like The University of Cincinnati have a default rate of more than 10%. As we all know too well, college expenses continue to skyrocket while the job market and salaries continue to stagnate.
As a very current example, Student Loan Law Group was recently contacted by a young professional. He had recently finished college with both undergraduate and graduate degrees and a total student loan debt of $276,000. The job he was able to get pays him well less than $40,000 per year.
All of his loans are being serviced by Nelnet one of the loan servicers for the Department of Education. He contacted Nelnet to ask how he could manage his loan payment. They placed him in temporary deferment and said that with his current income the best payment he could get was $2900.00 per month, which is basically his entire paycheck.
To say he was panicked and severely de-motivated to go to work would be an understatement. He knew he would be quickly be defaulting on his loan and facing many years of wage garnishment of up to 25% of his paycheck per month.
Fortunately he was referred to the Student Loan Law Group (SLLG). SLLG is a division of Porter Law Firm, and is totally focused on helping people with Student Loan Debt issues.
After analyzing his loans, SLLG saw that he would qualify for the Income Based Repayment Program. SLLG set him up with a $129.00/month payment for a year. Each year after that he will be required to re-certify his income and he will be required to pay a small portion of his Net Disposable Income. This means he will never required to pay the full payment of $2900 per month unless he is making more than $250,000 a year. The Income Based Program has a 300 month limit. Basically, whatever a borrower cannot afford to pay within the 300 months, is forgiven. For him it could literally be $100,000s of dollars. Additionally he is able to save his voluntary deferment for an emergency in the future instead of using it up now. The client was able to easily pay the small fee charged by SLLG and enthusiastically pursue his new career and work towards increasing his income.
His HR department was saved a great deal of time and effort on the inevitable legal issues that would have resulted had he not contacted Student Loan Law Group. He is not being garnished and he is not looking for another job. Typically, people that end up being garnished quit jobs in the hope of finding work where they won't have a large portion of their pay deducted by the Department of Education. Additionally, people become distracted at work.
Tens of millions of Americans currently have student loan debt. The annual default rate on that debt is approximately 14%. That means a lot of de-motivated employees and HR professionals working on the related legal issues.
It doesn’t need to be that way. Student Loan Law Group is there to help you and your employees head off these problems before they start, as well as create happy outcomes in most default and garnishment situations.
To find out more about how SLLG can help you and your employees go to:
The Student Loan Law Group can help businesses manage their employee's Student Loan Issues.