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Bad things can happen when you default on student loans

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Credit bureau Experian reports that more than one-fourth of Americans have an item in the hands of a third-party debt collector. For many, those delinquencies are their student loans. At present, student loans have spiraled into a $1.5 trillion debt crisis for American consumers.

Arrested over student loans?

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When you consider the question: “Can you be arrested for not paying your student loans?” the answer should be, “absolutely not!” However, issues related to student loans could see a warrant for your arrest issued.

Bankruptcy judges may be loosening restrictions on undue hardship

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Student loan debt in America is a crisis of epic proportions. The total cost of this debt is now over $1.5 trillion. Individual debt coming out of college averages close to $35,000. For those who can afford their student loans, it's no big deal. For others, though, it can escalate into a full-blown financial crisis. Despite the debt spiral, there is some good news lately with court decisions, and it seems that restrictions are loosening on bankruptcy forgiveness of student debt. Here's what you need to know.

Choose your student loan repayment plan wisely 

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Student loans are a national crisis at $1.5 trillion and climbing every day. If you’ve got college debt you’re struggling to repay, you may need to reconsider your choice of payment plan. Even if you can afford your payments, you might want to adopt a different strategy for repayment that better fits your financial goals.

A conversation about PSLF rejections

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Public Service Loan Forgiveness can be a lifeline for student loan borrowers who can’t afford their college debt. It lets you pay on a more affordable plan for 10 years while working at a qualified government, military, or charitable organization and then sees the remainder of your loan balance forgiven with no income tax consequences. It sounds great, but many problems have plagued the plan and rejections have run rampant, leaving many borrowers frustrated.

Retiring with student loans is not a good idea!

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As you head into your golden years, your prime years of earning big bucks are behind you, and your income usually settles into a fixed situation and is not nearly as high as it once was. If you can’t afford student loans now, being stuck with them while in retirement is an even worse prospect. Already too few Americans have enough in the bank for retirement and don’t need lingering college debt.

Student loan payments can be cheaper

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Outstanding student loan debt in the U.S currently stands at almost $1.5 trillion. Repaying this debt is a burden for many. If you’re struggling to make your student loan payments, deferment or forbearance can give you a respite from payments, but after that, you need a long-term solution.

Looking for student loan forgiveness?

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Got a pile of student loans you can’t afford (or would love to avoid)? If so, there are several student loan forgiveness programs to consider. There are some run by the federal government, some by state and local government, and others by employers. Today we take a look at five programs that can lessen or eliminate your college debt.

Undue hardship standards may change

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When your student loans are unaffordable, one life-changing option to consider is bankruptcy. Private student loans are easier to discharge in bankruptcy than federal loans, but even federal loans are dischargeable under certain circumstances. To achieve discharge of federal school debt, you must demonstrate “undue hardship.”