Are you behind or struggling with your student loans? Are you currently being sued or having your wages garnished or threatened to be garnished? If you answered yes to any of these questions the following article could change your life. You could have the garnishments stopped, receive a 4-5 month payment break, start making payments YOU can afford, and get out of debt. Debt problems and wage garnishment can cause marital problems, problems on the job, can cause depression and make life downright miserable.
In this bailout economy there are programs available for almost every type of financial hardship you could think of. The “Economic Stimulus Package” for the banks, “Cash for Clunkers” for the auto makers, Making Home Affordable Plan” for home owners in trouble with their mortgage, and more. With all these programs available there are many ways to eliminate different types of debt, and get back on your feet, however when it comes to Federally backed loans such as Student Loans, there never seems to be a solution. Even Bankruptcy can’t get rid of your student loans.
Thankfully there are new program available for those who are having financial difficulty with their student loans. This particular article focuses on those in “Default” (minimum 270 days behind) on Federally backed student loans. The Income Contingent Repayment plan or “ICR” consolidates your defaulted student loan(s) into one new loan and a repayment plan with monthly payment based on; your yearly income, family size, and loan amount. As your income rises and falls, so do your payments. Your monthly payment will be re-evaluated annually, based again on your family size, annual Adjusted Gross Income (AGI) as reported on your federal tax return, and the total amount of your restructured loans(s). After 25 years any remaining balance on the loan is forgiven. There are no “prepayment penalties” and if you die, the loan dies with you.
The first thing to do is meet with your counselor. Take along all application documents and be ready to discuss your finances. The adviser will go over your financial statements and help you figure out what the best course of action is for you. If it is decided that you need a loan modification, the counselor will work with you to write a loan modification hardship letter. This letter is written to your lender to outline the reasons why you should get a loan modification.
Perhaps the best feature of all, the program is guaranteed to improve your current situation or your money back.
Learn more about Obama Mortgage Relief Plan Qualifications.
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