Student Loan Repayment Options

It is no secret that obtaining a degree comes with a significant financial cost. Many students’ families lack the resources to pay for school out of pocket, and though competitive scholarships and grants are available, it is likely that at least some of the funds will have to be borrowed through a student loan program.

These loans must be paid back after graduation or upon disenrollment from school, and they are frequently among the most significant financial obligations that one will have during his or her lifetime. Student loans issued by the US government are not dischargeable through bankruptcy, so it is important that you remain aware of how you can work with your creditors to establish satisfactory arrangements. Contact the Arizona bankruptcy lawyers at the Harmon Law Office, L.L.C., at 480-829-0494 to learn more about your options.

Federal Student Loan Repayment Schemes

Though it would certainly be in everyone’s best interest if student loans were repaid swiftly, the economic realities of the practical world sometimes interfere with that. In recognition of the variety of circumstances that students will face after graduation, there are several different structures of repayment that one can seek. It is important that you are forthright with your lender and express your reservations or financial distress in a timely manner so that you can resolve the matter without tarnishing your credit.

Some of the repayment options that may be available to you are:

• Standard Repayment – Monthly payments that will pay the debt entirely within 10 years
• Extended Repayment – Monthly payments that may extend as long as 25 years and which may be gradually increased over time
• Income Based Repayment – Your monthly payment is calculated based on the amount of your income and the size of your family
• Graduated Repayment – For a 10 year period, you will repay the entire debt with a monthly payment amount that increases every 2 years throughout

Contact Us

Managing your finances can seem like a nightmare, and bankruptcy may be the best option if things have run too far afield. Contact the Arizona bankruptcy lawyers today at 480-829-0494 to speak with an experienced attorney about choosing the best student loan repayment option for your situation.