Student Loan Debt: Is There Any Relief?

By Tracy L. Hirsch

If you have student loans, that’s something that unfortunately won’t fade away in bankruptcy. However, for individuals qualifying for the Public Service Loan Forgiveness Program (PSLFP), relief may be within reach.

Under this program, some individuals in Louisville, Kentucky (and other cities and states), qualify for forgiveness of the balances of their student loans with Direct Loans.

After 120 consecutive payments are made while employed full time by certain public service employers. many teachers and other public service employees qualify under this program.

If you work in the public service sector, find out more about student loan forgiveness here.

For those individuals drowning in student loan payments that do not qualify, bankruptcy may still provide temporary relief. Many individuals enter into a five-year Chapter 13 repayment plan in order to pay something to their creditors.

While under the five-year bankruptcy protection, debtors are protected by the “Automatic Stay” and creditors cannot attempt collection of these student loans as long as they are included in the repayment plan.

Although any remaining balance of the student loans will survive at the completion of the Chapter 13 Plan. That being said, this often provides debtors with an opportunity to get back on track so that when they complete their plan, they’re able to set up a payment plan directly with the student loan lenders.

If you want to find out if bankruptcy is a viable option for you, call me or text me to set up a free consultation. My direct number is  (502) 435-2593. Find out how to achieve financial relief from your students loans and other debts. I’m here to provide you with the help that you deserve!

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