Student Loan Help

Get Relief from Student Loans

Illinois Lawyer for Student Loan Work Outs

Most people believe there is nothing that can be done to get relief from student loan debt. This is simply not true. There are a number of options available to assist student loan borrowers. Unfortunately, much of this has not been highly publicized so most borrowers are left in the dark. Also, schools tend to do a poor job of counseling and preparing students to meet demanding repayment obligations.

Learn about your options - call (312) 544-0365 now!

When a borrower calls her student loan lender for help, there is often more confusion and all repayment options are not explored. The borrower is then left frustrated and either seeks a deferment or forbearance (if available), struggles to make the high monthly payments, or simply doesn't pay and slides into default.

Federal Student Loans

Defaulting on student loans is bad, especially if they are federal loans. Federal loans are one of three types of student loans (Federal, Private, and State). What make a loan a federal loan is that the United States Department of Education guarantees (insures) the loan. A federal loan is deemed in default if it is 270 days late. Once in default, the entire balance of loan is due and debt collectors become involved. The greatest concern for most borrowers with a defaulted loan is the large jump in the balance. The balance increases because of collection fees, which can be as high as 25% of the loan's balance. Federal loans also give the lender the ability to use an administrative wage garnishment (AWG) to collect on a defaulted loan. Up to 15% of a person's disposable income may be garnished.

The nasty thing about AWGs is that the lender does not have to file a law suit and get a judgment first. This is an administrative remedy – no legal action needs to be initiated. Borrowers in default on federal loans may also have their tax refunds intercepted, social security payments offset, and find themselves in litigation with the Department of Justice. Federal employees in default can have as much as 15% of their pay offset. Borrowers with Federal or State licenses (doctors, lawyers, real estate professionals) may find their licenses in jeopardy.

The good news about federal loans is that they have the most options and borrower rights. In addition to a deferment and forbearance, there are options that allow borrowers to consolidate, repay based on income, rehabilitate a defaulted loan, have the loan forgiven, and have the loan administratively discharged. Again, most of these options are never explained to borrowers.

Student Loans from Private Lenders

Private student loans originate from private lenders and are not guaranteed (insured) by the government. So, none of the remedies discussed above are available for private loans. State law governs the enforcement of these loans. So, a statute of limitations will likely come into play as will any available state law remedies or defenses. Generally, enforcing a private loan is no different than enforcing credit card debt.

One big difference between credit card debt and private student loans is that private loans are generally not dischargeable in bankruptcy. A chapter 13 bankruptcy (essentially a consolidation of your debts) may be used to make affordable payments on private loans for up to five years. Any remaining private loan balance will not be discharged and will survive the chapter 13 bankruptcy. Chapter 13 for private loans is not a solution; it's more about financial management and staying out of litigation.

State Student Loans

State loans originate from agencies created by the State. These agencies are quasi-governmental. Not every State offers these loans and States that offer them often administer them differently. So, it isn't easy to say what remedies, defenses, or repayment options are available for these loans. Some States can intercept State tax refunds. Some States offer no ability to cure a defaulted loan. Also, interest rates for these loans tend to be higher than Federal loans and are comparable to rates for private loans. Quite frankly, the only substantive difference between State and private loans is the disbursement process.

If you are having trouble paying your student loans or are just looking for clarity, please feel free to give me a call at 312-544-0365 or fill out an online case evaluation form.

Our Client Testimonials

    "A Very Hands on Attorney - Patient & Attentive"
    I found Mr. Glanzer to be a very hands on attorney. Anytime I had any questions or concerns I felt very comfortable calling him and he was very patient with answering all my questions.
    Chapter 7 Client
    Chicago, IL
    "He Always Returned Our Calls and Emails"
    Deciding to file bankruptcy was not an easy decision. Mr. Glanzer spent a great deal of time with me and my husband discussing the various options available to us. He answered all of our questions and always returned our calls and emails. Thanks to him, my husband and I now have our fresh start. We are so grateful for his compassion and time. I highly recommend him.
    Deborah, Chapter 7 Client
    Chicago, IL
    "Wonderful to Work With & Very Accessible"
    The guys are wonderful people to work with and they are very accessible and always willing to answer any questions you may have no matter how stupid you think they may be. I will definitely recommend they and use them again if needed in the future.
    Chapter 7 Client
    Chicago, IL
    "He Took the Time to Explain Everything"
    I so appreciated Mr. Glanzer's patience in helping me through a challenging time. He took the time to explain everything to me very thoroughly to be sure I fully understood. I'm very grateful to have found him and would highly recommend him.
    Chapter 7 Client
    Chicago, IL
    "Forget All the Others, this Firm is the Real Deal!"
    Charles is an excellent attorney. All of our questions were answered and no question was looked at as dumb. They give all their clients their full attention and you don't see that with too many lawyers. Though we have finished our case with them, they still took the time to answer questions that I had afterward. I would recommend them to anyone who is looking for a bankruptcy attorney.
    V and M Natour - Chapter 7 Clients
    Chicago, IL

Contact Us Today!

Schedule Your FREE Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy

Why Choose Us?

  • We offer a FREE case evaluation to all prospective clients
  • We have two convenient office locations in Chicago
  • We have outstanding reviews from former clients
  • We make sure clients are always prepared for their hearings
  • We aggressively protect clients from creditor harassment
  • We return all calls and emails in a timely manner
  • We will keep you up-to-date about any progress in your case
  • We give every client the personal attention they deserve
  • We have successfully handled hundreds of bankruptcy cases
  • We have over 20 years of experience