Student loan debt is a problem for many people today. A lot of low-income Ohioans believe a college education is their ticket out of poverty. However, when they need to take out loans to pay for college, the debt can derail their plans of a middle-class lifestyle. Since most college graduates must start their career in entry level professional positions, the amount of money they make isn’t enough to successfully pay off their debt and do all the other things they planned when they enrolled in school. Although this might seem like a catch-22, it is possible to get student loan debt under control in order to enjoy the benefits of a college degree.
College graduates who cannot afford to pay their student loans on their entry-level salary might be able to use bankruptcy laws to reduce the monthly payments. Although most student loan debt cannot be discharged, they may be reorganized through Chapter 13 in Dayton OH. By using Chapter 13, people with an excessive amount of student loan debt might lower their monthly payments so they can afford their loan payment as well as their other expenses. Other debts, such as credit card bills and personal loans could also be included in the bankruptcy. An attorney could help a client understand which debts are eligible for Chapter 13 bankruptcy protection. Many of the debts that aren’t eligible for Chapter 7 can be included in a Chapter 13 repayment plan.
Getting those first student loan bills in the mail after the initial deferral period can seem overwhelming, especially for recent graduates who are just getting started in their new career. Depending on the amount of financing it took to get through college and how long it took them to get a job after graduation, it might be challenging to pay the initial bills. Student loan companies have programs that may be able to help some graduates manage their payments but these tend to result in excessive interest charges over the life of the loans. By filing Chapter 13 in Dayton OH, college graduates with overwhelming debt have an opportunity to begin their career without having to live in poverty.