Student Debt Relief Lawyers in Nashville, TN

The escalating cost of higher education in the United States has led to an unprecedented surge in student loan debt. For many, borrowing money has become the primary means to afford college, making student loans an integral and often inescapable part of the higher education factor of the American dream. The necessity to manage this debt effectively has never been more pressing.

The federal government has proposed debt relief measures for federal student loans to address this burdensome issue affecting millions of Americans. However, no laws have been enacted thus far. The unfolding status regarding this issue means student loan borrowers must remain aware of the latest updates regarding possible debt relief eligibility criteria and implementation.

Currently, the best way to address student loan debt is to discuss your case with one of our attorneys at Flexer Law. We can provide up-to-date information and guidance about your options for debt relief through bankruptcy. Our team has been helping debtors of all ages and from all walks of life for 40+ years; we have become the leading bankruptcy firm in the Middle Tennessee region.

Book a free initial consultation with a Nashville student debt relief attorney by connecting with us via our online form or call (615) 805-6374.

Discharging Student Loans Through Bankruptcy

Generally, under 11 U.S.C. § 523(a)(8), student loans are not eligible for discharge through either a Chapter 7 or Chapter 13 bankruptcy filing. However, proving to the bankruptcy court that you and your dependents will suffer “undue hardship” by having to repay a student loan may allow a discharge. 

To do this, you must file a Complaint to Determine Dischargeability, a formal legal action requiring the court to assess whether your circumstances qualify as undue hardship. This is called an “adversary” proceeding, a separate process from your bankruptcy case.

For the court to make your student loan debt dischargeable, you must provide substantial evidence of the following: 

• Repaying the loan would prohibit you and your dependents from maintaining a minimal standard of living
• This financial hardship will persist for a substantial part of the repayment period
• You have made a good-faith effort to repay the loan

Other “tests” than this may be used by the court to evaluate your circumstances and whether a student loan discharge should be allowed. Our knowledgeable bankruptcy attorneys can assess your situation to determine how your case may be adjudicated. 

Student Loan Forgiveness Programs

Student loan forgiveness programs can help reduce or eliminate your student loan debt, but eligibility can be complex. Here's an overview of key programs:

Public Service Loan Forgiveness (PSLF): Offers loan forgiveness for those working in government or nonprofit organizations.

• Eligibility: Must work full-time for a qualifying employer and make 120 qualifying monthly payments under a qualifying repayment plan (e.g., Income-Driven Repayment).

Teacher Loan Forgiveness: Helps teachers working in low-income schools.

• Eligibility: Must teach for five consecutive years in a qualifying school and meet other criteria.

Updates and Changes: Federal forgiveness programs are often updated, with changes in eligibility and requirements. It's crucial to stay informed about new developments.

Income-Driven Repayment Plans (IDR)

Income-driven repayment (IDR) plans adjust your monthly payment based on your income and family size. Here’s how they work:

• How IDR Plans Help: These plans make your payments more affordable by capping them at a percentage of your income, and can extend your repayment period to 20 or 25 years.
• Types of IDR Plans:
  • Pay As You Earn (PAYE): Caps payments at 10% of your discretionary income.
  • Revised Pay As You Earn (REPAYE): Similar to PAYE, but eligibility is broader.
  • Income-Based Repayment (IBR): Also caps payments at 10-15% of discretionary income.
• Impact on Loan Forgiveness: Remaining on an IDR plan for 20 or 25 years may lead to loan forgiveness, but you could owe taxes on the forgiven amount.