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Federal Student Loans

If you are like millions of California residents, you took out federal student loans to help pay for your college education. Chances are, your plans included graduating, getting a job, and paying off your loans, so you didn’t worry about it. Then the bills started arriving.

Fast-forward to 2020.

Now, your finances are tight because you’re unemployed or underemployed and COVID-19 added monkey wrench to the whole situation. If you’re making the default payments that your servicer assigned, there’s nothing left for the down payment on a mortgage or a car. Thankfully, there are options that can help you handle overwhelming student loan debt. We can assess your case and show you which alternatives can help you the most.

Federal Student Loan Repayment Plans

Whether you graduate or leave your program, the first federal student loan payment is due six months from when you finish classes. If you didn’t talk with your student loan servicer at least 45 days before the first payment was due, you are on the standard repayment plan. It takes the sum of your student loans and interest, then divides it into 120 installments (10 years). For example, your payments will be about $515 a month if your loans are $60,000, depending on interest rates.

If you have significant debt, such as medical bills, are aren’t working, this monthly requirement may be too much for you to pay.

Repayment Plans

Are you interested in lowering your monthly student loan payments?

We can get you moved to one of the repayment plans that could reduce your monthly payments, giving you some much needed breathing room. Student loan repayment options include:

  • Pay as You Earn Repayment Plan (PAYE)
  • Revised Pay as You Earn Repayment Plan (REPAYE)
  • Income-Based Repayment Plan (IBR)
  • Income-Contingent Repayment Plan (ICR)
  • Income-Sensitive Repayment Plan
  • Graduated Repayment Plan
  • Extended Repayment Plan

The plan that’s right for you depends on your unique circumstances. Contact us today and take back control of your finances.

Some of repayment plans increase payments gradually, regardless of the future, while others allow for a payment that adjusts as your income adjusts. For individuals on these plans, income is re-verified and evaluated each year. At Costagliuolo Law, we can help you understand the long-term implications and immediate impact of each plan and how it affects your goals. Once we work through your options and decide which plan works best for you, the documentation can be completed and filed as needed.


Are you making several monthly student loan payments, each for a different amount? If you signed financial paperwork each year you were in school, you likely took out multiple loans. Each of them could have a different interest rate.  A direct consolidation loan combines those educational loans into one payment, instead of several. Benefits include:

  • Allowing you to qualify for repayment plans and forgiveness programs
  • Switching from variable rate to fixed rate interest
  • Simplifying your monthly payment requirements
  • Giving you a longer time to repay your debt

There are 20 different types of federal student loans that you can consolidated. They include nursing student loans, Direct PLUS loans, and parent loans for undergraduate students.


Loan rehabilitation helps you get back on track if you have defaulted on your federal student loans. We can work with the servicer and negotiate on your behalf. Once rehabbed, we can consolidate the loans and get you into a repayment plan. This can reduce the amount of monthly payments, give you some breathing room and allow you to take back control of your finances.

Bankruptcy doesn’t automatically include student loan defaults. However, depending on your circumstances, you may qualify for student loan discharge. We can help you determine if Chapter 7 bankruptcy can help you reclaim financial stability.

Contact Us Today

Student loan law is a specialized niche, with complex requirements. We have the training and experience to help you get back on track, Contact us today for a free, no obligation consultation and find out what your options are and make the choice to move forward with the rest of your life. 


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