Florida Federal Student Loan Repayment Plans Lawyer
Student debt has affected our country in ways that most never expected it would. Millennials with heavy student debt delay moving out of their parents’ houses, put off starting their own businesses, and delay getting married and having children. According to NPR, homeownership among 24 to 32 dropped nine percent between 2005 and 2014, much of that attributed to student debt. Since 2006, student debt has increased by more than $1 trillion to over $1.6 trillion, almost doubling the national deficit. Millennials are the first generation to earn less than their parents, according to CNBC. Stagnant wages, higher costs of healthcare and education, and dwindling social programs are all causes to this American economic decline. While student debt is seemingly an unbreakable shackle, Millenial and Gen-Xer households with a college degree earn twice as much as their peers without any college education, essentially making college mandatory if one wants to earn a decent living. If you are struggling to stay on top of your monthly student loan payments, a federal student loan repayment attorney may be able to offer you relief. Here at Nowack & Olson, PLLC, our Florida federal student loan repayment plans lawyers can help find the right repayment plan that is applicable to your specific circumstances.
Types of Repayment Plans
There are two general categories of repayment plans. These include income-based repayment plans, and graduated, standard, or extended repayment plans.
- Income Based Repayment Plans
- Income-Based Repayment (IBR)—This plan is available to most borrowers, and limits monthly payments to 15 percent of the borrower’s monthly discretionary income.
- Pay As You Earn (PAYE)—PAYE plans limit monthly payments to 10 percent of your monthly discretionary income, but many borrowers are ineligible. All borrowers need to talk to an attorney before they start any repayment plan.
- Revised Pay As You Earn (REPAYE)— This plan also enables borrowers to limit their monthly student loan payments to 10 percent of their monthly discretionary income, but it may end up being more expensive than a standard repayment plan for some individuals if their income increases.
- Income-Contingent Repayment (ICR)—ICR may result in a higher monthly payment than other plans, but it is usually the only repayment plan available for borrowers with Parent PLUS loans.
- Standard, Graduated, and Extended Repayment Plans
- Standard, graduated, and extended repayment plans are not income-based. Standard repayment plans are at a fixed rate for up to 10 years, graduated plans are for a similar amount of time but gradually increase in payment size (they start out small and get larger as you go), and extended repayment plans for up to 25 years and can be graduated or fixed in monthly payment amounts.
A Florida Student Debt Attorney Can Help You Create an Ideal Repayment Plan Today
No two borrower’s situations are the same. As such, you needed a detailed, comprehensive debt management plan specific to your needs. This may involve a repayment plan or another type of debt management solution. To speak to a Florida student debt attorney today at Nowack & Olson, PLLC, call 866-907-2970 to schedule a free consultation.