Testimonials: What Our Happy Clients Are Saying:

Prior to working with Michelle Labayen regarding my student loan relief, I experienced great difficulty that negatively impacted my stream of income and ultimately my well being. Despite my hardships, I was unable to negotiate a lower loan payment. Everything changed after I began working with Michelle Labayen. Michelle was able to completely illustrate my hardships and arrange for fixed monthly payment for my student loans!

- Tamara H.

Michelle Labayen helped me more than I thought possible. I felt like I had no hope left. Michelle contacted my student loans and made agreements with them, that I could not even come close too. She always stayed in touch with me and made sure the agreements made were doable for me. Michelle was a life saver and the light at the end of a dark tunnel. I recommend her to everyone I know in similar situations. I thank her for all she has done and she to me was more than a lawyer she became part of my family. Thank you for everything

- Stephanie M

Learn About The Student Debt Crisis

Learn about the huge problem facing the United States. You are not alone. Learn the facts about student debt.

Student Debt Options

Your student loans may have you feeling trapped. You may have heard that your student debts will follow you for eternity. Learn the truth. There are options available.

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The student debt landscape is constantly changing. Stay in the loop with recent news and happenings to keep you in the know.

Relief For Student Debt Is Finally Here

About Student Debt Lifeline:

This site is committed to providing information about

  1. Various options for repayment, forgiveness and discharge of student loan debt;
  2. Ongoing legal and legislative attempts to pass student loan reform; and
  3. Accumulate information from students about their student loan providers and servicers to review for predatory lending.

The student loan crisis is here and causing enormous economic and social damage, some student servicers are suing in state court and receiving judgments, other servicers are provide reduction of student loan debt. Know what your rights and options are and help others by providing information about your own student loan servicers and experience.

Student Loan Tips For Recent Graduates:

If you have recently graduated and were a beneficiary of student loans, there are a number of things that you should keep in mind regarding the loans so as to avoid future financial constraints. In most cases, it’s always advisable that you begin repaying the student debt as soon as you get a source of income but this is not always the case for many people. On the other hand, if you’re able to get a reliable source of income after graduating, there are some tips that you should follow in order to enjoy your life without the baggage of student loans.

student loan slaveryIt’s important to keep track of your loans so as to know how your repayments are gradually stacking up. What you should actually do is a breakdown of the entire value you owe, check the payments you have been making and compare that with the remaining loan balance. These statistics will give you a clear understanding of your financial efforts so that you can decide what you need to change in order to make more progress. Keep track of the lender’s website as they constantly release updates and waivers that you can benefit from. There are certain forms of loan forgiveness and incentives for early repayment which will come in handy to help you reduce the strain of repaying student debt. 

As a recent graduate, it’s not guaranteed that you will instantly get a job. The current job market is really competitive and there are very few positions available. The other problem with the current job market is that some of the positions that are available are not full time while others don’t have longevity. Some of the jobs are available for a period of just a couple of months and thereafter the job is terminated. You obviously cannot rely on such jobs for a consistent source of income. In such instances, you need to be well informed on how to utilize the money earned from these short term jobs into fulfilling payments for your student debt. 

Education-Should-Not-Be-A-Debt-SentenceMost lenders are aware that not everyone will be lucky to get a job soon after graduation. You therefore need to be aware of your grace period as this will give you an idea of how much time you have to look for a decent job. Different loans have different grace periods and it’s therefore important to find out how much time your lender will give you. As soon as you have determined how much time you have, it’s advisable that you make all necessary plans to ensure that you don’t miss your first payment. 

Being able to make your first payment is usually regarded as a sign of goodwill and it will help to give you some breathing space even if you don’t have a consistent income. Many people who miss their first payment get plenty of messages and calls from the lender who seeks to find out why you’re not meeting your end of the deal. You definitely don’t want the lender to come looking for you as they may end up ruining your day with their bossy confrontation. 

It’s important to note that having to pay your student debt isn’t something that should give you sleepless nights. Don’t panic as there are plenty of options for managing your student loan. Even if you’re unable to make payments because of financial challenges or health problems, there’s always a strategy to fall back to and this will help you have a peace of mind. There are legitimate ways to postpone your loan payments some of which include deferments and forbearance. 

abeShould you be unemployed or having financial challenges, what you can do is defer your loan payments. In such a case, the lender will basically have to give you more time before you can be expected to start making your payments. Remember to read the fine print on this option because in most cases, it attracts a higher interest rate which may be a bit of a challenge for you later on. Forbearance basically involves a process where you may be able to stop making payments or even reduce the value of your monthly payments for a period of up to twelve months. You of course have to formally apply for any of these options and hope that it will be granted. 

As earlier mentioned, it’s important to be in constant communication with your lender regardless of whether you’re able to make your loan payments or not. Ignoring your student loans can lead to serious consequences which can last a lifetime. Failure to pay your student debt can lead to delinquency and default which can cause severe dents in your future financial plans. As soon as you start making money, it’s very important that you analyze the available loan repayment options. There is of course the standard option whereby a fixed amount is expected on a monthly basis. However, depending on your income, you don’t necessarily have to follow this standard option. 

If you’re privileged to have a high source of income, you can consult with your lender and come up with a payment option that will help you speed up the loan repayment process. If you’re in such a situation, you will most likely benefit from plenty of incentives such as paying low interest rates. Depending on the type and number of loans you have, it’s important to prioritize lowering the principal of your loan. Most loan payments cover late fees first, then they go to the interest rate and finally the principal. If you’re able to pay more than what you’re required to in the monthly installments, you can easily be able to reduce the value of your principal. This will in turn reduce the interest rate which definitely comes with plenty of incentives.

All in all, it’s important to note that student debt is not like the money you borrow from loan sharks in the streets. In as much as the loans have an interest value on them, it’s usually quite affordable and a simple graduate job can comfortably be able to pay the loan. That’s why it’s important to choose an ideal payment plan that fits your current income. You should also be aware of the various repayment terms and benefits of your loan as this will help you plan your finances. Ensure that you discuss with the lender regarding your current financial situation so that you can workout a payment plan that you’ll both be very comfortable with.

Student Debt Crisis Update

Big News: When Is A Tuition Debt A Student Loan Or A Contract?

Big News: When Is A Tuition Debt A Student Loan Or A Contract?

The difference is very important to many of us who have private loans.  Most recently, Judge Elisabeth Stong of the Eastern District of New York questioned if the Debtor had a “debt” to repay a college tuition  Harris EDNY BK 13-47320 ( which is dischargeable in bankruptcy court) or an educational loan ( which isContinue Reading

Senators and Action In Regards To The Student Loan Debt Issue

Senators and Action In Regards To The Student Loan Debt Issue

Although we ask our senators for help, we are still getting the rhetoric that something needs to be done, but even with the best intentions, real action is still missing. “Sen. Booker was joined by Sens. Elizabeth Warren (D-MA), Al Franken (D-MN), Jack Reed (D-RI), Richard Durbin (D-IL), Charles Schumer (D-NY), Richard Blumenthal (D-CT), ChrisContinue Reading

To Pell or Not To Pell

To Pell or Not To Pell

Upon graduation from a postsecondary education or the completion of a degree program it is pretty common to accrue a sizable amount of student loan debt in the process. However, “a Federal Pell Grant, unlike a loan, does not have to be repaid. Federal Pell Grants usually are awarded only to undergraduate students who have notContinue Reading

Senator Warren Pushing For Bankruptcy Discharge

Senator Warren Pushing For Bankruptcy Discharge

Congress is paying attention to student loan debt though—and bankruptcy is increasingly part of the debate.  There was a a hearing this morning in the Senate Banking Committee on student loans, where Senator Elizabeth Warren pushed very strongly in favor of allowing bankruptcy discharge. You can watch the full hearing at this link (Sen. Warren’sContinue Reading

Do Not Let Your Student Loans Go Into Default

Do Not Let Your Student Loans Go Into Default

  Do not let your student loan go into default. Many income repayment options are not provided to defaulted loans. A good portion of federal loans cover one or more of the income drive plans. Income-driven repayment plans are designed to make your student loan debt more manageable by reducing your monthly payment amount. LowerContinue Reading

Student Loan Help From The Government?

Student Loan Help From The Government?

The newest trending debt in America: student loans, that currently clutter most newspapers and websites.  It is an inevitable burden that college students accept as a price for their education, but is being slowly lifted.  Student loans has become a government issue in the executive and judicial branch.  President Obama has implemented a plan whereContinue Reading

Student Debt Refinancing BLOCKED

Student Debt Refinancing BLOCKED

The Democrats were proposing legislation to compliment the President’s order to allow refinancing of current student loan debt and to not wait until 2015.  The Republicans threatened to block it after the President signed the Order; and they delivered on their promise. Student Debt Refinancing has been blocked. It is additionally speculated that the Student debtContinue Reading

President Obama Signs Executive Order

President Obama Signs Executive Order

President Obama’s signed executive order will provide relief to millions with student loan debt. The order will allow repayment based on 10% of income and will start in 2014. Democrats are seeking to propose additional legislation. Stay with Student Debt Lifeline for updates.

Michelle With Congressman Payne!

Michelle With Congressman Payne!

NACBA News May 2014

NACBA News May 2014

As you know, the mission statement of NACBA is to serve the needs of consumer bankruptcy attorneys and protect the rights of consumer debtors in bankruptcy. It is also the responsibility of the organization to weigh-in on policy matters where the playing field may not be level in the area of bankruptcy law. Over theContinue Reading

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