Consolidating student loans after bankruptcy

Rated 3.88/5 based on 898 customer reviews

Federal student loans for undergraduate borrowers do not require a credit check (most applicants don’t have credit at that point in their lives), but PLUS loan and Parent PLUS loan applicants must not have an adverse credit history.Federal student loans have limits that vary by what kind of federal loan you’re borrowing, your year in school and whether you’re a dependent or independent student.This is especially important because student loans are difficult to get rid of, even if you’ve had financial hardship or filed for bankruptcy.(You can see how your student loans affect your credit standing — and, as a result, your ability to qualify for credit cards, auto loans, etc.For Direct loans, the most common kind of federal student loan, the government limits dependent student loan borrowers to no more than ,000 for their undergraduate degrees.

If you don’t know who your federal student loan servicer is, you can log into the gov, using your FSA ID, to get the details.Keep in mind that the standard repayment period for federal student loans is 10 years.If you choose standard repayment for your student loans and keep up with your payments, your student loans will be paid in full in 10 years.For people with a high level of debt relative to their income, programs like Income Based Repayment (IBR), Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE) can help you lower your monthly payments to an affordable level, and after 20 to 25 years of on-time payments, your remaining loan balance may be forgiven (though you may have to pay taxes on that forgiven balance).In addition to the forgiveness options through IBR, PAYE and REPAYE, you can also consider working in a field that qualifies you for Public Service Loan Forgiveness (PSLF) or an industry-specific loan forgiveness program.

Leave a Reply