Student Loans can be restructured and eliminated in Arizona Bankruptcy Court
Many so called Low-Cost Bankruptcy Lawyers simply don't know how to Eliminate Student Loans in Bankruptcy - We Do !
(602) 266-1212 |(480) 827-0777 | (855) 512-0777
Phoenix Mesa Scottsdale Arizona - Student Loans are not Sacred Cows in Bankruptcy
Three out of four graduating college seniors today face student loan payments starting six months after graduation. The Graduating Class of 2014 is the most indebted in history
The growing burden of student loan debts has delayed and detoured millions of American for purposes of buying a home, getting married and starting a family. Most college-educated job entrants are earning from about $37 to $60 thousand annually before taxes. Housing, transportation, health insurance, and student loan repayments for recent graduates, strain early-career earning capacity, even for those with little credit card debt. Sometimes family tragedies, medical emergencies and unplanned pregnancies interrupt college careers. Changing economies can require you to change direction academically, refocus your field of study or profession. With limited income, college students increasingly rely on consumer credit (credit cards and signature loans) to make ends meet during periods of minimal earnings, setting up even more inevitable demands for payment.
Over 40 Million American Adults owe student loan debts, seven million have gone into default status and over 12 million are delinquent. Only home mortgage loans are larger than student loan debts among consumer borrowers
Interest rates on federal student loans are set by Congress. While banks and mortgage giants like Freddie Mac and Fannie Mae pay less than 1% interest to borrow money from the Federal Reserve Bank, federally guaranteed student loan borrowers pay at least 3.86% for subsidized loans (the cheapest rates for Student Loans) and up to 8.5% for private loans to graduate students that have federal backing.
Public college tuition cost has almost tripled from about $7,000 in 1962 to more than $17,000 and today's Average College Graduate owes more than $30,000 in student loan debts upon graduation. Graduate Students now owe over $40,000 on average
At the low end of the interest rate scales, the average student loan borrower faces a monthly payment of between $305 and $500. 30-year fixed home mortgage financing for a house at the national median home price ($217,000) is roughly $1250 per month at the lowest interest rate available. A full-time worker earning minimum wage can expect gross earnings of about $1500 per month. At that rate, after paying your mortgage and your student loans, you had better hope you stocked up on cup-o-noodles back in your college dorm days because your money is all spent in the first couple days of the month. We're here to tell you there is hope for student loan borrowers who suffer multiple income and expense shocks leading to debt crisis and the solutions do cover your student loans. Getting relief on student loans is not easy, but we know the formula and how to prove what the Court needs to know in order to get you the most benefits possible when it comes to eliminating student loans in bankruptcy.
Total Outstanding Student Loan Debt is $1.2 Trillion, equal to 10% of outstanding consumer mortgage and auto financing. The US Government profited $41 Billion on student loans in 2013. Only Exxon and Apple made more that year
The United States reports a total external debt (owed outside the U.S.) of $17 Trillion and a Gross Domestic Product (think of it as earnings) of $16 Trillion, a debt-to-income ratio of 1.06. An average four-year college graduate would have to earn close to $32,000 per year to equal that ratio, which might not sound too bad. But remember, Gross Domestic Product for the US includes total output for the entire country for all purposes including domestic and exported food and technology, construction, manufacturing, bio-science, healthcare, welfare, emergency services and national defense. Recent college graduates have to perform at least as well just to pay their student loans , before they ever get to the costs of mortgage debt, automobile financing, credit card debt and living expenses like health insurance, utilities and food and clothing. It's hard to imagine paying for dental work, getting married or starting a business or a family, if you get saddled with the average student loan debt load and you earn little more than minimum wage. In recent decades, relief in bankruptcy has become increasingly limited, except for those who can prove all the requirements are present for getting a student loan discharge.
The Number of Households with student loan debt doubled from 9% in 1989 to 19% in 2010. One out of three heads of households aged 20-40 faces student loan payments every month
Over the half-century since Tom Brokaw's Greatest Generation came of age and made their epic sacrifices to preserve Western Democracy, Freedom and the American Way, more than three generations of Americans went from infancy to old age having the choice, and being encouraged, to pursue education after high school. And the statistics collected during the past sixty years are overwhelmingly consistent and clear: post-secondary education at the college level is good. Graduates earn more, pay more in taxes, become more mobile and possess more transferable skills, start more businesses, contribute more to their communities, impose relatively smaller burdens on public resources, are more tolerant of diverse cultural traditions, beliefs and varied ethnicities and exhibit traits that foster a more stable and productive population and a more peaceful, less violent society than populations composed largely of people who do not attain post-secondary education. The decision to pursue a college education is not controversial. But the consequences of having to borrow in order to pursue higher education, now more than ever, present moral and economic dilemmas for today's college hopefuls.
Outside bankruptcy, most student borrowers who took loans out before October 2011 will not benefit greatly by recently enacted legal protections. If you default on student loans, interest and collection costs can easily double the amount you owe in less time than you spent in college. Doctors, lawyers and other professionals can even lose their professional licenses when they fail to pay according to schedule.
Because student loans are more commonplace than ever in society and constitute such a significant segment of the U.S. economy, law makers and elected officials are paying more attention to the problems of large numbers of student loan borrowers who, through no fault of their own, face almost insurmountable obstacles to paying off their student loan debts or even servicing the payments on student loans according to schedule. The consequences of delinquency and default are so pervasive and long-lasting, and affect such a large percentage of the population, that the U.S. Congress and the Federal Courts are forced to consider carefully the restrictions that exist under current Bankruptcy Laws and find ways to soften the impact of existing limitations on bankruptcy relief for student loan borrowers.
We know well what it takes to get relief on student loans as a part of the overall protections available in bankruptcy. Very few bankruptcy lawyers in the Phoenix area will dare to discuss discharging student loans in bankruptcy because it is not easy. And we stand ready to do this for you, precisely because it is not easy, rather because it is hard and we know you can find few others willing to take the time and make the effort, for you, your family and your future.
(602) 266-1212 |(480) 827-0777 | (855) 512-0777
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