Student Loan Debt Relief Attorney

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At Sadek Bankruptcy Law Offices, we realize that every situation is different. Our debt relief lawyers will take the time to learn about your situation and your goals. Our objective is to explain your legal options and offer the best debt relief strategy for you in the most compassionate and friendly manner possible. Call 24/7 to schedule your meeting with a lawyer.


Our office understands the financial stress our clients endure. Therefore, in addition to reasonable legal fees, we offer a payment plan to all of our valued clients to make quality legal services most affordable.


In addition to our primary law office in Center City, Philadelphia, we also have law offices throughout the Greater Philadelphia, Pennsylvania Area and in New Jersey. Our branch offices have contributed to making us the #1 Bankruptcy Filer and debt relief firm in the Greater Philadelphia area. Our goal is to have a convenient location within 20 minutes of where our clients work or reside.

Student Loan Debt Relief Attorney

Over the years we have heard many stories and helped thousands of clients with student loan debt. It is understood that a borrower does not want to fall behind.

A common theme is that our clients cannot afford life’s necessities and emergencies while making their monthly student loan payments, let alone save for an apartment, future home, a vehicle down-payment, or retirement.

Accordingly, our office proudly assists residents throughout Pennsylvania and New Jersey with Student Loan legal assistance.

student loan debt

Despite progress on Student Loan forgiveness, many still face defaulting on their loans.

Our recent presidential administration has made great strides expanding and enforcing student loan forgiveness; however, the great majority of student loan borrowers will continue to be riddled with student loan debt. In 2021 there is 1.7 trillion dollars in student loan debt outstanding with 45 million borrowers facing student loan debt.

This is the second largest debt Americans face behind only mortgage debt. As college becomes more expensive and as defaults are increasingly more difficult to avoid, this debt will only continue to grow.

Most astonishingly it is expected that approximately 40% of student loan borrowers will be in default of their student loans by 2023.  Generally, default means that a borrower is 120 days or more past due on their student loan payments.  If you need help, you are not alone.

Recently, as part of the CARES Act, Coronavirus Aid, Relief and Economic Securities Act of March, 2020, there has been a forbearance on student loan payments and a moratorium on collection of student loan debt as well.

In the event that the borrower is in continued default on their student loans, the borrower can be collected against by way of ineligibility for future student loans, collections, lawsuits, bank levies and garnishment of tax refunds.

On December 22, 2021, the U.S. Department of Education has made an announcement regarding a 90-day extension of the freeze on student loan payments and collections that was previously scheduled to end on January 31, 2022.

In response to the continuing impact of the pandemic, the Administration is extending the pause through May 1, 2022, so borrowers can have additional time to plan for repayments, which also helps reduce the risk of student loan defaults.

Students and borrowers are encouraged to enroll in income-driven repayment plan that suits their financial situation for a smooth transition back into resumption of payments in May. The Administration is also committed to improving the quality of student loan servicing.

Student Loan Debt Relief Attorney

There is Good News for Borrowers

Ninety percent, 90%, of student loans are “Federal” Student Loans. Federal Student Loans are made and serviced by the government and have “by-right” repayment and loan forgiveness.

Loan forgiveness is generally upon death, total and permanent disability, or the school which the borrower was attending had closed while they were enrolled.

More frequently our firm assists with curing the student loan default and assisting in a long-term student loan cure or management program. There are 3 by right methods of curing student loan defaults which are listed below:


Student Loan Settlement

Settlement of student loans usually requires help from family and/or friends and involves immediate payment to cure the student loan(s) that are delinquent.

This option is the least utilized option in that borrowers generally lack the affordability to immediately catch-up on Student Loan payments.


Student Loan Rehabilitation

To remove a loan from default through rehabilitation, a student loan borrower needs to make 9 consecutive monthly payments that equal 15% of your discretionary income.

This type of cure works best with a relatively low amount of default and where affordability exists to continue making regular and monthly student loan payments after the Rehabilitation period.


Consolidation and Income Driven Repayments (IDR)

IDR is where we have been able to best assist in negotiating long term solutions for student loan management and to provide as much increased and disposable income to our clients over the years.

The greatest benefit of the IDR program is that the borrower can pay their student loans based on what they can afford, rather than what they owe.

The repayment plan under the IDR can last for 10-25 years, however the unpaid amount of student loan debt and any interest is deemed to be forgiven at the termination of the IDR Plan.

IDR does require an annual re-certification which could adjust your payments up or down depending on your situation, however the annual recertification is adjusted for inflation and does account for family size as well. Generally, the IDR payments are substantially similar year after year.

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Work with Our Dedicated and Experienced Bankruptcy Lawyers

Sadek Bankruptcy Law Offices, LLC has a dedicated team of lawyers who help clients achieve the benefits of bankruptcy in Pennsylvania and New Jersey. Our lawyers have over 75 years of combined experience and have filed more than 5,000 successful bankruptcy cases.