Living in Springfield has its pluses. The Fantastic Caverns. Beautiful hinking trails. Drinks at Golden Girl Rum Club.
One draw back, however, is a local lawyer that knows how to get student loans under control.
Let me help with that. I help people across Missouri solve their student loan issues.
Get Student Loan Help
How to Stop a Garnishment
Almost always, if you have a wage garnishment for student loans, it’s because you defaulted on a federal student loan.
Federal student loan wage garnishments are typically issued by private collection agencies hired by the Department of Education.
Once you default, a debt collector can garnish 15% of your wages.
If you default with a second federal student loan with a different collection agency, then the second debt collector can garnish 10% of your wages.
So, in total, you could potentially have a federal student loan wage garnishment for up to 25% of your wages.
The wage garnishment rules laws in Springfield do not apply to federal student loan garnishment. This means there is no time-limit for the garnishment. It can last until the loan balance is paid in full. And there is no head of household exemption.
Before it Starts
You can stop a federal student loan wage garnishment before it starts by:
- Making voluntary payments
- Agreeing to pay your loans under a loan rehabilitation agreement
- Applying for a Direct Consolidation Loan
- Filing a chapter 7 or chapter 13 bankruptcy
Read Full Article: How to Stop Wage Student Loan Wage Garnishment Fast
After it Starts
You can stop a wage garnishment after it starts by:
- Entering into a loan rehabilitation agreement or
- Filing bankruptcy
A loan rehabilitation agreement will stop a wage garnishment after you make 5 monthly payments.
You cannot speed the process up by making the payments at the same time. You have to make each payment within 20 days of the date it’s due. Get Help Stopping a Garnishment
Negotiate a Student Loan Settlement
You can negotiate a student loan settlement for both federal student loans and private student loans.
Private student loans are almost always better than federal student loan settlements.
In my experience, private lenders are typically willing to settle for somewhere between 40-70% of the loan balance, including principal and interest.
Federal student loans, on the other hand, typically won’t settle for less than 85% of your loan balance less collection fees.
In either case, whether the loan is federal or private, you have to default on your student loans before you can settle.
Lower Monthly Student Loan Payments
When your monthly payment increases, it can throw your entire budget into whack.
With federal loans, your repayment options are controlled by:
- the types of federal loans you have
- your tax filing status (married filing jointly, married, filing separately, or single) and
- your family size (family size for student loans may be different from whom you claim as a dependent)
You can estimate your monthly payments under different income driven-repayment plans by using the Department of Education’s Repayment Calculator.
Read Full Article: A Comprehensive Guide to Repayment Options for Federal & Private Student Loan Debt
For private student loans, there are few options for getting a lower monthly payment.
Typically, your options are limited to interest-only payments for a short period of time or requesting a deferment or forbearance.
Other than that, your only other option may be looking into refinancing with a private lender.
If you got that route, pay attention to the interest rates, repayment terms, and options for loan forgiveness in the event of disability or death.
Missouri Student Loan Forgiveness Options
Missouri offers only one student loan forgiveness program:
The Primary Care Resources Initiative for Missouri (PRIMO).
The PRIMO program offers loan forgiveness to Missouri residents seeking a degree to become a medical professional.
If you have a degree in another field, then you’ll want to rely on the federal government’s loan forgiveness programs.
The three most popular loan forgiveness programs for federal student loans are the:
There are no loan forgiveness programs for the elderly, for unemployment, or for other hardship.
As for private student loans, there are no loan forgiveness programs for private student loans.
File Student Loan Bankruptcy in Missouri
At some point, your student loan debt just becomes too much.
Filing bankruptcy looks appealing.
But you’re wondering: can I file student loan bankruptcy in Missouri?
The short answer is that you can file bankruptcy to discharge your student loans.
The much longer answer is that it is difficult to discharge your student loans through the bankruptcy process.
Difficult does not mean impossible, however.
I’ve helped student loan borrowers discharge their student loan debt and significantly reduce the balance of their loans by arguing that repayment would cause them undue hardship.
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Student Loan Debt
Free Student Loan Help in Springfield MO
The first place you can get free student loan help is from your loan servicer or the Department of Education.
The issue with both of those options is that they don’t work for you. And because they don’t work for you, how can you trust them to have your best interest in mind when giving you legal advice?
Depending on your income, Springfield residents may be eligible to get pro bono legal services to help you evaluate your options.
Here’s a list of the organizations: Legal Services of Southern Missouri, Inc.
809 N Campbell Ave
Springfield, MO 65802