Solutions for Defaulted Student Loans

by DeLadurantey Law Office, LLC on May 15, 2014

Solution sign 173px wideIf your federal student loans are in default and you are ready to commit to curing the default, we can help. The process is commonly referred to as “rehabilitation” of your student loan.

In order to rehabilitate your loan, you must agree to a repayment plan. Usually you are required to make nine payments within a ten month period. Once you have voluntarily and timely made the required payments and your loan has been purchased by a lender, it will be considered rehabilitated or out of default status. You should understand that any involuntarily payments, such as through a garnishment, do not count toward your rehabilitation payments.

Rehabilitation takes work and financial commitment, but it also has numerous benefits. Most importantly, the default status is removed from your student loan. This includes removing the default notation on your credit report. You also regain eligibility for benefits such as deferment, forbearance, repayment plans and loan forgiveness. Additionally, any wage garnishments will cease and your income tax refund from the IRS will not be withheld. You may even be eligible to receive additional federal student aid.

If your student loan is in default and you are interested in rehabilitation, call us to schedule your initial consultation.

The “defender of the little guy,” DeLadurantey Law Office. LLC. handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications.   Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.

 

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