Student loan debt seems to be on everyone’s mind these days, from students to parents to the government. Congress is currently fighting to decide whether to keep interest rates the same or lower them, which could make a big difference in how much people are able to pay. With new reports indicating that up to half of all student loan debt is currently not being paid, now is a good time to take a look at how student loan debt affects your finances and your potential need for bankruptcy.
Bankruptcy Will Not Discharge Debt
Student loan debt is not dischargeable in Fort Worth bankruptcy except in specific cases, but there are options for managing high amounts of educational debt that not enough people are currently taking advantage of. A lot of people overlook or are not aware of the fact that there is a federal program in place called “Pay As You Earn,” which offers great benefits to those who qualify. Those enrolled in the Pay As You Earn plan have monthly payments that cannot exceed 10 percent of their monthly income. Not everyone qualifies, but it is certainly an avenue worth exploring for those facing debt and unable to discharge in bankruptcy.
There are a number of other options for debtors, as well. The federal government has different types of repayment programs for those with varying financial needs, and there are tools such as forbearance and deferment that can postpone your monthly payments while you are experiencing financial hardship. The important thing is to educate yourself about the tools at your disposal, so that you can be prepared to make the right choice for your financial future.