Student Loans

Now you must pass satisfy this 3 part test:

1. based upon your current income and expenses, you cannot maintain a minimal standard of living if you are forced to repay your loans.
2. your current financial situation is likely to continue for a big part of the repayment period.
3. you have made a good faith effort to repay your student loans.

The first part is easy to satisfy as most people that come to see me are having trouble making ends meet. It is the second and third parts that are not so easy…or so it seems.

However, as the world changes due to Covid-19 and the entire movement to wipe out student loans, the court is starting to relax the standards. Moreover, as I have been challenging more and more student loans, the lenders are scared of people that actually bring an objection and sometimes bringing a case will lead to a settlement that you can afford as they are too scared to risk a court determination. The court too usually tries to foster a settlement.

In one of my biggest reductions, I had a doctor who took out $160,000 for medical school. True that being a doctor does pay well, but it does not immediately pay well. I challenged his student loans and although he really could not pass the discharge test, we were able to settle for $65,000! I have been finding that the banks want a guaranteed result and settlement provides that – everybody gets a win.

That doesn’t mean I am trying to settle, I want you to get rid of your loans.

Please contact The Law Offices of Gregory A Flood to let us see if we can help you with your student loans and other debts.