Q. My husband and I have accumulated a lot of debt over the past 10 years: student loans ($ 200,000), home credit ($ 50,000), and upcoming dental expenses ($ 50,000). We particularly dislike the idea of college loans and would like to get that debt off our shoulders. What would you recommend?
– In trouble
A. This is definitely a big debt.
Student loans have become a huge problem for many people.
Unfortunately, it is very difficult to get student loans exempted from liability for bankruptcy, said Carra Kingston, a Union City bankruptcy attorney.
But it’s not impossible, she said.
“Debtors must show that they are overwhelmed and will never be able to afford to pay their student loans, “ she said. “It is very difficult for this test to show that people cannot pay off their student loans.”
For solutions student loan debt, The first thing people need to consider is whether their student loan is private or federal, she said.
“Individuals who have received federal student loans can contact their service staff to see if they are eligible for any assistance,” Kingston said. “Many student loan programs have income-based repayment options that allow borrowers to repay a specific amount based on their income.”
There are other programs that can help individuals obtain student loans, but it is best to discuss options with your loan agent, she said.
“Other plans allow individuals pay off your loans on the basis of civil service and various fields of activity, ”she said. “People can see their options here to see if they are eligible for any loan forgiveness options. “
If none of these options work, she says, you can combine all of your federal loans into one student loan or take advantage of the abstinence plan.
Just keep in mind that you could lose certain options, such as income-based repayment plans, in the event of a consolidation, so be sure to be aware of the full implications of such a move.
Getting private student loans is a little more difficult, Kingston said.
“Unfortunately, private student loans are not always as good as federal student loans,” she said. “There are several options for people with private student loans – refinance the loan at a lower interest rate or try to negotiate a settlement with them.”
“Sometimes, if you can afford to offer a lump sum, private student loan lenders will work with you,” she said.
As for your other debt, you should work with non-profit credit consultant.
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Karin Price Mueller writes Deceived column for NJ Advance Media and is the founder NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Subscribe to NJMoneyHelp.comfrom weekly email newsletter.