As education costs continue to increase, so do the number of borrowers enrolling in federal student loan debt forgiveness programs. The U.S. Education Department reports a 40% increase in the just the last six months. The cost of education has increased in recent years- up 6% in 2014 alone. The Obama administration recently proposed capping debt forgiveness at $57,500 per student.
The programs—especially the one revamped by President Barack Obama in 2011, Pay As You Go—forgives federal student loans after borrowers have paid a certain percentage of their income for a certain number of years. These programs aim to make sure borrowers are not prohibited from working in public sector jobs as a result of having to make astronomical student loan debt payments or pay their loans into retirement. These programs could reportedly cost the federal government as much as $14 billion a year.
Students have argued that these programs are necessary- particularly for those who want to take lower-paying jobs in the public sector. These programs are notably one of very few ways to get out of student loan debt. Unlike consumer debt, not even declaring bankruptcy or death can remove these debts. Private student debt is even harder to eliminate; A New York Times report on Tuesday found that when a cosigner dies, many private student lenders are now demanding early repayment for their student loans.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.