Featured News 2012 How to Avoid or Eliminate Student Loans

How to Avoid or Eliminate Student Loans

College tuition can cost thousands upon thousands of dollars, and students often have to take out loans in order to make it through their four years at school. With these loans come the responsibility to repay, and this can take years. For some, their student loans continue to pile up with interest, and eventually lead to no other choice but bankruptcy. If you feel buried under your student loan expenses, then you can file for a Chapter 13 bankruptcy and create a repayment plan. During the bankruptcy, your creditors will not be allowed to contact you and ask for money from you or threaten to sue you for the expenses you owe.

In most cases, student loans are non-dischargeable. This means that you will need to eventually come up with the cash to pay back your loans. Normally in a Chapter 13 bankruptcy, a lawyer will help you to structure your income so that you are able to pay back the loans in a selected amount of time. Typically this is a three to five year window where you will devote a significant amount of your income to the repayment plan. Your repayment plan is supervised by the court, so that they can make sure that you are making effort to repay the money as promised.

If you are more than nine months behind on your loan payments, then your bank can demand that you pay the whole amount due at once. At this point, your only choice may be to file for bankruptcy. The law will let you eliminate your student loans if you can prove that they create “undue hardship” in your life for you and your family. You will need to prove to the bankruptcy court that you are only earning enough to sustain a “minimal standard of living.” Normally, this means that you can’t afford the typical commodities like internet, TV, or a cell phone bill. You will also need to prove that your financial standing isn’t subject to change in the near future.

In order to get a hardship discharge from student loans, you will need to file an extra petition after you have already declared bankruptcy. On this petition, you will ask the court to make an exception in your case. Your attorney will be able to help you create the best plea in order to get your debts discharged. When you declare your bankruptcy many of your other debts may be discharged. This means that while you will have to pay back your student loans, a lot of other debts you have been carrying will be eliminated.

If you are going into college and getting ready to take out loans, there are a variety of different ways you may be able to earn an income and steer clear of debt. Many times college students are concerned about how to pay their way through college because they don’t have the time to work a full time job while devoting their efforts to their studies. That’s why college students need to come up with creative ways to get the cash they need. In addition to applying for scholarships and grants to lessen the load, college students can use a variety of quick-income methods to get some cash and lessen their loans.

On way to do this is by renting out a car. If you have a car that you only use on select days, then think about renting it and collecting the profit to go towards your student loans. A variety of websites allow people to post their cars for rent on certain days. Also, you can host foreign exchange students at your house to help the income roll in. Some programs will pay the host families per night that the foreign exchange students are there, which can help you to reduce your college debts with the profit.

Another creative college student says that he is lab rat in order to get the money to pay for college. This young man told CNN that he swallows pills, gets blood drawn, and allows the scientists to use him as a test model all for the sake of science and a little extra college tuition cash. Also, some college students donate blood in order to get some extra cash. If you need help covering your college tuition costs and have debt that needs to be repaid, talk to a bankruptcy attorney today to get the aid you need to make your debts disappear!

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