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Beware: There is as yet no quick debt relief for student loans

On Behalf of | Jun 10, 2016 | Chapter 7 Bankruptcy, Firm News

It was recently reported that student loans are second only to mortgage loans on the list of consumer debts nationwide. At $1.2 trillion, they surpass both auto loans and credit card debt. The sad fact is that most of the student loan debt in Florida and other states is in arrears with little chance of it being paid. This situation has  created the ideal platform for scammers to target student loan holders who are desperate for debt relief.

Nevertheless, regardless of the marketing gimmicks of scammers — there are no quick fixes to get out of student loan debt. Most scammers ask for payments that could be as much as $600 for promised debt relief. Victims of such scams have reported paying the fee and then never hearing from the companies again — leaving them out of pocket and with no relief.

While most student loans cannot be discharged in personal bankruptcy, some remedies may provide some debt relief. Efforts may be made to enter into negotiations with the lender. The loan company may be willing to settle for a specific amount or agreed to a reduction in payments for a specific period of time. There is no need to pay a so-called credit repair company to pursue relief that could otherwise be arranged at no cost.

Those in Florida who are unable to pay their student loans may benefit from a consultation with an experienced bankruptcy attorney to get answers about debt relief options. A lawyer can assess the circumstances and suggest the most appropriate way forward. In cases in which the person also has overwhelming credit card debt, discharging that debt in personal bankruptcy may enable the individual to maintain payments on his or her student loan.

Source:, “Can Your Student Loan Be Forgiven or Reduced?“, Don Hudson, May 25, 2016

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