Tampa Student Loan and Bankruptcy Lawyer Blog — March 24, 2020
While Income Driven Payment applications are currently on hold (paper applications had been processed but they have now also been put on hold), we suggest that you send a paper application to your loan servicer to ensure it is in the queue. Also, please use the most recent IDR application form. (Form #1845-102 with expiration date 4/30/2027). Attach documentation of your income. (latest tax returns filed or a pay stub). You can upload it to your servicer but, with many online systems down, it’s best to send it via certified mail with a receipt. Don’t ignore your student loan bill. Not only will you incur late fees but it will also damage your credit rating and possibly lead to default. This is not good for federal student loans. Please read our blogs to find out why.
You might still have some forbearance remaining. Recently, I wrote a blog about forbearance. This will not accrue credit toward forgiveness but it will keep your credit in good standing and avoid default.
Bankruptcy could be a good option for you. You can at least get rid of your other debts so you can afford to pay for your student loans. The best case scenario is a partial or complete discharge of student loan debt. Do not believe your servicers who may claim that bankruptcy is not available for student loan debt. They are often incorrect. A bankruptcy discharge is not automatic, but a bankruptcy attorney with experience can use many tools to reduce student loans. We use them every day!
