Student Loan Help


How We Got Here

The Problem with Student Loans Today

  • National Balance Over 1 Trillion Dollars
  • Average student owes approximately $30,000 in federal student loans
  • Almost half of them are in Default or behind on payments
  • Withdrawing from college for uncontrollable reasons such as illness, cost, family issues, etc…
  • Unable to buy home, car, or go back to school
  • Having their tax returns and wages garnished while the balance keeps growing!
  • Hurting our economy as a whole

The Solution to Fix the Problem

In 2007 Congress Passed Legislation Called the William D. Ford Act, a Federal Direct Loan Program. There have been extremely beneficial revisions to the law in 2009, 2012, and again in 2014.

Summary of the Law: Allows the Department of Education to buy federal loans from lenders.


What if I am in Wage garnishment?

If a borrower has fallen so far behind that they are having their wages garnished because of defaulted student loans, we can still help.  The borrower may still qualify for the Department of Education’s program, but there are some extra steps that need taken before achieving that consolidation.


Who qualifies?

Typically, all federal loan borrowers will qualify.  The qualifying factors depend on the year that the loans were issued, the type of loans that were borrowed, and the combination of loans that are currently owed.  After speaking with an analyst at Krasker Law Student Loans – they will be able to determine if, and what the borrower may qualify for.


Who doesn’t qualify?

  • Borrowers in an active bankruptcy.  Only after the bankruptcy is discharged or dismissed can the loans be consolidated through the Department of Education.
  • Still enrolled in college or university half-time or more (grad school included).

Half Time and Full Time Credits Guide


Who Will Benefit the Most?

  • Public Service Workers working Full-Time (Forgiven after 10 years instead of 11-25 years)
  • High Student Loan Balance → $10,000 or Higher
  • High Family Size → More Than 1
  • Consolidating out of Default before filing taxes.  No defaulted loans means no tax/wage garnishment!
  • Borrowers in Default that are trying to go Back to School
  • Low Adjusted Gross Income (fixed income, self-employed, un-employed, under-employed, etc…)

Karl Burt, Sales Manager from Credit Brain had this to say:

“Any time you take your federal loans through the government’s consolidation program, it pays off all of your loans and it reads on the credit reports paid in full or paid as agreed both of which does not hurt your credit score at all. The fact that you opened up a new line of credit, by consolidating all the loans into one, with a more affordable monthly payment in relation to your new limit only helps lower your debt to income ratio.”

There are more approaches one can take to repairing your credit. For more information; see our affiliate for Credit Repair service, also powered by The Law Office of Paul A. Krasker.

Visit Credit Brain