Reboot Your LifeTampa Student Loan and Bankruptcy Attorney Blog

Matt Taibbi of the Rolling Stones just published a very enlightening piece “The Great College Loan Swindle” today.  He explains just how universities, banks, and the government turned student loan debt into America’s next financial bubble — or as a client called it this week a “nightmare”.

He highlights a student who very nearly committed suicide over overwhelming student loan debt incurred at age 19.  The spiral of debt began  with colleges telling everyone who could, to go to school and get a college degree to remain competitive in today’s marketplace.  That a high school diploma is no longer enough.  But if everyone goes to college, this simply means that a bachelor’s degree is the equivalent of a high school degree 10 years ago.  Kind of like 50 is the new 40.

Parents not wanting to stand in the way of their child’s future, either paid out the nose or went into debt themselves by signing Parent Plus loans.  Kids were pressured to sign loan applications electronically semester after semester.  The students we spoke with did not receive paper copies of the applications they signed.  No one really knew what the total balance would turn out to be.

How can a bankruptcy help reduce your student loan debt?

We’ve been making great strides in obtaining student loan debt relief in bankruptcy lately.  Most people think only of whether their student loans can be discharged in bankruptcy.  Usually the answer is “no”.  But that’s not where the focus should be in most cases.

Our goal is simple:   reduce student loan debt to manageable and sustainable levels with an end in sight.  We do this for both our bankruptcy and non-bankruptcy clients.  This may include discharging some private student loans in bankruptcy.  It may include taking advantage of all income based/debt forgiveness opportunities for federal loans, both in and outside of bankruptcy.  Just selecting the right program can make a huge difference.  At least half the clients who come and see us are in the wrong program costing them hundreds more per month in some cases.  Public service loan forgiveness is a huge mess.  New grounds exist to object to private debt owned by NCSLT that can be used to strike their debt – called proofs of claim — in bankruptcy.  All this can add up to hundreds of dollars of savings per month, and possibly tens or more thousands of dollars over a Chapter 13 bankruptcy plan.

This could easily be you!  This is a word-for-word review posted this week by a satisfied student loan client:

Christie Arkovich and her team changed my life for the better. I went to her stressed because I couldn’t afford my monster student loan payment any longer (and getting a deferment or forbearance would give me temporary relief, but my already huge monthly payment would go up over 60% after the two year term). Christie assured me there were other alternatives and ended up getting my monthly payment reduced by an astonishing 88% AND emancipating me from having to deal with awful, %#@$ Navient. The process was very smooth, easy and inexpensive (she even offers a payment plan). If you are in despair over your student loans, give her a call – seriously. I’m NOT stressed about my loan for the first time in over ten years, it’s incredible – thank you, Christie!!!

Own your Student Loans — Rather than Owing them.