The NEW AND IMPROVED Student Loan REPAYEment Progam

STUDENT LOAN HELP

The Department of Education has implemented its 2016 REPAYE program to aid in the student loan crisis facing many Americans. REPAYE, short for the Revised Pay as you Earn plan, offers monthly loan payments at a maximum of 10% of your total income, subject to requirements, of course. The best part of REPAYE is that it is available to all graduates with federal direct student loans.

Here’s the scoop on REPAYE:

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The ABC’s of Bankruptcy – an alphabetical series designed to help you understand the lingo.

abc

Today’s blog is brought to you by the letter “A”, for assets that is.   Assets play a big role in the bankruptcy world. A quick search of bankruptcy assets on the web can bring fear to just about anyone considering filing. People seriously freak out about the possibility of losing their assets, and who wouldn’t???   So let’s calm your fears and get into the nitty- gritty of assets.

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Will Letting My Private Loans Expire Make Them Disappear Too?

For a recent college grad, the ideal situation is that you take out no more debt than you can afford to repay, graduate, get a good job in your field and earn enough to pay your student loans each month.  Ten years later, or even less, you’ll have paid them off and you’re done. But for many that is not the way it happens, even with a decent starting salary, recent grads are discovering that after rent, insurance, utilities, and student loan payments, its impossible to get ahead of their debt.

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Let’s get this bankruptcy thing straight!

fact mythCome on, who really wants to file a bankruptcy?  From my experience, as a bankruptcy lawyer, not too many.  For some people it’s the best financial decision they can make, but others either  fear the unknown, or the good old world wide web often lends a helping hand in creating a fictitious nightmare scenario to a whole lot of people.   I hear all kinds of weird stories about bankruptcy and I’m here to tell you that these war stories are blown way out of proportion and most people really have no idea what a bankruptcy can and cannot do for them.

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Bankruptcy and Paid-off Credit Cards

 

credit, debtAs a bankruptcy attorney, I’m often asked by clients if they are required to list ALL of their credit cards, or for that matter, if they can pay off small balance cards and keep them.   Unfortunately, the answer is most always no.  You are required to list all of your debts in your bankruptcy and it’s not fair to pay off one creditor and not another.  After all, bankruptcy is about equitable distribution to all creditors, so you if you are contemplating filing bankruptcy you’re better off to stop paying and using all of your cards.   While there is no law that says you must list open credit cards with zero balances, the likelihood is that the creditor will find out anyways and cancel your card.   After all, you are bankrupt and that’s a big red flag to creditors.   

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Tax Deductions For Your Student Loans

Student loans are a burdensome financial issue for many for many graduates. The U.S. Department of education reports that over sixty-nine percent of college graduates are burdened by loan debt. Former students owe the government an average of over $28,000 nationally. In some states the average debt is over $30,000. Click here to view a state-by-state breakdown of student loan averages.

The current political climate almost assuredly looks daunting for former graduates. As such, it is imperative that those who borrowed educational loans become acquainted with the tax deductions that apply to their educational loans.

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Student Loans and Credit Score

credit score

The Good News

While trying to repay student loans quickly can be a dreadful process, there is a pretty sweet perk! Often, having this student loan can actually improve your credit score. Whether they are federal or private, they are treated as an installment loan unlike revolving credit. As long as you pay them on time and fully, your credit score can raise from having these loans. This is because 10% of your credit score comes from your credit mix. So having both credit cards as a revolving payment, and student loans which, again, are considered installment loans can benefit your credit score.

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