How can you help me lower my student loan payments?

Types Of Student Loans

You can have Federal Student loans that are guaranteed by the Federal government. All Federal Student Loans are now made by the Department of Education and serviced by Navient or a collection agency such as Great Lakes or Melnet. If you have an older student loan, it may have issued by someone other than the Department of Education. There are also Perkins loans which are issued and serviced by the school. The final type of Federal Student loans are Parent Plus Loans.

The second type of student loans are private student loans. These are issued by companies other than the Department of Education. There are not any relief programs for private student loans. However, they do not have the collection authority that Federal Student Loans have.  A private student loan cannot seize your tax refund and they must get a state court judgment against you to be able to garnish wages or bank accounts. There may be defenses to the collection actions taken by private student loan companies and, especially, collection agencies collecting on private student loans.

If You Don't Pay Your Student Loans


If you have Federal Student Loans, it is important that you get into a repayment program that you can afford. The agencies servicing Federal Student Loans have extreme collection powers. They can seize your tax refunds and garnish your wages without going through the state court. If they start a wage garnishment, there is no end date for the garnishment as there is for garnishments issued by state courts. In addition, the amount of your wages that they can garnish is higher than it is for a state court garnishment.

Repayment Plans

There are several repayment options for Federal Student Loans. Based on your income and the size of your family, you could qualify for a substantially lower payment plan. This payment plan must be renewed every year and can be modified if your income or family size changes. Since the payments are based on your family size as reported to the IRS, there are also things that you can do to lower the amount of your payment based on the way you file your tax returns.

I can assist you to determine the best payment plan for your circumstances and complete all the paperwork required to get you into that payment plan. At your initial consultation, we will determine the types of loans that you have and their current status. Then we will determine what is the best payment plan for you and what you may need to do going forward to reduce the payment even more. If your loans are currently in default, we will work on a plan to cure the default and get you on a repayment plan so your wages are not garnished and your tax refund is not taken.

However, you need to take the first step by scheduling your initial consultation. I will need to see your most recent Federal tax return and your most recent pay stub. I will also need any information that you have on your student loans. If you have an account with the Federal Student Loan Database, I will need your login and password to access your account. Likewise, if you have an account with your servicer, I will need your login and password to access that account. If you don’t have accounts, we will create an account for you. However, you will need to be able to access your email to verify the account so bring your smart phone with you.

Call me today at 757-320-2010 and let's set you up with the lowest possible payment plan for your student loans.

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Edrie Pfeiffer
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Edrie Pfeiffer, Bankruptcy & Divorce Attorney