The federal government may have a helpful option for young people held back by student loans.
Pay As You Earn Repayment Plan
Starting December 21, 2012, the Pay as You Earn Repayment Plan allows borrowers to create a payment plan and potentially qualify for loan forgiveness. The program could help approximately 1.6 million people: anyone who started borrowing during the recession, has a high debt in comparison to their income, and began looking for work during the recent period of high unemployment.
However, the rules for eligibility are relatively strict. What if you began borrowing right before the recession, which the program sets as beginning on October 1, 2007? Or what if you make a little more than the minimum?
A lot of the people who come in to see me about filing bankruptcy in Kansas City have student loans to worry about. While most student loans can't be discharged through bankruptcy, we can often help anyway by helping you get rid of the other debts that make paying back student loans so difficult.
It's very important to pay off your student loans, but when choosing between that and your electric bill or car payment, how can you prioritize correctly?
We can help you get rid of those debts, either by discharging them completely or by creating a payment plan much like the Pay as You Earn option that makes your monthly costs reasonable for your and your income.
Castle Law Office has been helping residents of the Kansas City metro get a fresh financial start for the past 14 years. Call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.