Loans

Student loans are difficult, but not impossible, to discharge in bankruptcy. To do so, you must show that payment of the debt “will impose an undue hardship on you and your dependents.”

For more information, visit the Student Loan Borrower Assistance website.

Payday lenders are not the only option for consumers facing debt problems. There are many alternatives to payday loans such as: small savings accounts or rainy-day funds; salary advances from employers; credit card advances; working out extended repayment plans with creditors; and loans from friends, relatives, religious institutions, or social service agencies. In addition, many lenders have developed lower-cost alternatives to payday loans that have better repayment terms.

To learn more about payday loan alternatives, visit the PTLA guide here.

This handout warns homeowners about predatory “high-cost” home loans and how to avoid being targeted. It explains common scams, like loan flipping, unaffordable loans, hidden balloon payments, high fees, and contractors who push expensive financing for home repairs. It also gives practical self-protection steps: shop around with reputable lenders, read everything before signing, ask for all costs in writing, and know you can cancel certain home-secured loans within three business days.

Some mortgage lenders target older homeowners who have a lot of equity but not a lot of income. They push “easy” loans with sky-high interest, huge fees, balloon payments, constant refinancing, or pressure sales tied to home repair work. Those terms can quickly drain equity and lead to foreclosure. This handout explains common warning signs (like being rushed to sign, refinanced again and again, or told to roll medical or credit card debt into a home loan) and what makes a loan predatory. It also notes that there are legal tools that may help challenge these loans, including federal disclosure laws, rules against kickbacks, and unfair/deceptive practices laws. If this is happening to you or an older relative, you should get legal help right away.

A loan is borrowed money which must be repaid in one or more payments. Lenders charge interest on the amount you borrow. This means that you pay back more than you receive. This is how a lender covers the cost of doing business and makes profit. The higher the interest rate, the more you must repay. You should know that the lower the monthly payment, the longer it will take you to repay the loan and the more you will pay to borrow the same amount at the same interest rate. See the attached guides in English and Spanish for more information.

The Center for Responsible Lending has created a list of five "Signs of Predatory Auto Finance Loans" that you may view below or view on their webpage: https://www.responsiblelending.org/issues/signs-predatory-auto-finance.