Timothy J. Sierra, Attorney at Law Trusted Florida Bankruptcy Attorney Since 1987
Call Today For A Free Initial Consultation
813-463-2256

Student Loan Law Series: The Trouble with Joint Consolidation Loans

Student loans can get overwhelming to handle on your own, and many couples who get married think it is a good idea to consolidate their student loans to make paying off the loans less of a burden. It's not.

Married couples have the potential to get divorced due to financial hardships, however once they are divorced from each other it doesn't mean their financial ties disappear, such as Federal Joint Consolidation loans. A Federal Joint Consolidation loan that was made while married cannot be reversed.

To fix the problem many divorced couples try to allocate the percentage of liability to each side. Some try to split the loans 50/50; others, by how much each party initially contributed to the loan.

However, allocation does not work due to several reasons. One being that, attorneys cannot possibly know that each party will make regular payments, on time for the remainder of the loan. The payments could take over 30 years with monthly payment plans.

Another issue to take into account is how willing the parties are to corporate with each other. This could mean that they might have to submit income information in order for one side to qualify for Income Based Repayment (IBR). If one or both of the divorcees have gotten remarried, it is highly unlikely that the spouses of either party are willing to disclose personal financial information so one side can benefit. Liability of loan payments remain with the couple regardless if they are now divorced. This means that if one party fails to make a payment the other faces the repercussions also.

Many divorced couples do not want to communicate with each other after the divorce is final. Having Joint Consolidated student loans with your ex causes a lot of problems with cooperating in paying the previously consolidated loans.

It is important if one does find themselves in a situation such as dealing with paying off joined student loans with an ex-spouse, to contact the right legal help to mediate and guide you to a debt free life.

Work Cited:

Beware the Nightmare Loan - Federal Joint Consolidation Loans (The Student Loan Lawyer CT Attorney Joshua Cohen)

http://thestudentloanlawyer.com/247/beware-the-nightmare-loan-federal-joint-consolidatoin-loans/

No Comments

Leave a comment
Comment Information
  • "When I first came to the decision to file for bankruptcy, I had no idea where to start. I began researching attorneys on the internet and came across the information for Tim Sierra. Since he specialized in bankruptcy and had a lot of experience......"
  • The process of going through bankruptcy could be very overwhelming but Tim made me feel at ease and I felt that my needs were being taken care of. I truly feel that he had my best interests in mind and the lines of communication were always open....
  • "I had to file a Chapter 7 bankruptcy. I didn't know anyone who could refer someone so I took a chance and just looked on the Internet. I don't remember exactly why I chose Mr. Sierra, but I am glad I did..."
  • He was honest, straightforward, and hard-working. In my case I ended up with some extenuating circumstances and he handled the matter professionally even though I'm sure the work probably exceeded what he originally felt it would be....
  • I don't ever write reviews, and I had no prior relationship with Mr. Sierra. This review is simply being written as a service to others that Mr. Sierra is an excellent attorney and should be considered for your needs if you need one....
  • "I'm very happy to have been referred to Tim for my Chapter 7 filing. He was knowledgeable in his field and very responsive in replying to any questions or concerns I had. Tim was also very accommodating with meeting times..."
  • " I recently was in need of Mr. Sierra's services and I found him to be very understanding and helpful in my particular circumstance. He met with me and explained everything in full detail and also answered every question that I had....."
  • " I recommend Timothy Sierra a loyal and dependable lawyer. When you talk to him you feel that you are with a friend or a member of your family. Timothy is able to lead you in every step of the process. Good job Timothy."
  • " Bankruptcy is a private and personally devastating life event. Timothy Sierra and his assistant, Nancy, made the process as painless as possible. They kept in close contact via phone and email so I always knew what was happening in my case...."
More Testimonials
Email Us Today

Schedule A Free Initial Consultation To talk to an experienced Tampa bankruptcy attorney, call 877-492-7449 or fill out the form. All calls are returned within 24 hours.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

We Have Offices in Tampa, Riverview and Brandon For Your Convenience.

Tampa Office
118 South Rome Avenue
Tampa, FL 33606

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Tampa Law Office Map

Riverview Office
6314 U.S. Highway 301 South
Riverview, FL 33578

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions

Brandon Office
305 North Parsons Avenue
Brandon, FL 33510

Toll Free: 877-492-7449
Toll Free: 877-492-7449
Phone: 813-463-2256
Phone: 813-463-2256
Fax: 813-258-4746
Map & Directions