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Student Loan Debt Relief

Help for problems with student loan debt.

Student Loan Debt Relief

Are student loans a financial hardship for you? Get help with student loan debt relief.

Common student loan problems.

Have you been sued on your defaulted student loans or have had your wages garnished or bank account frozen to repay the student loans. Are you currently late on payments or unable to continue making payments on your student loans? Or have you settled or paid off your student loan only to later receive a lawsuit on that same student loan. College tuition has skyrocketed and with high interest rates and a down economy many graduates like you are unable to make the demanded student loan payments. If you are in need of legal representation to defend yourself against a student loan garnishment or lawsuit, or if you need help negotiating a forbearance, deferment, reduced payments, lowered interest or a lower amount in a lump sum settlement, contact our office and speak to a debt relief attorney.

Student loans often cause problems with co-signors as well. The purpose of a co-signor (or guarantor) is that the lender can sue and collect the debt from the co-signor if you do not make your payments. The co-signor is usually a parent, family member or spouse. However, if you default on a federal student loan, your elderly parent’s social security income may be subject to seizure by the government. Or if you have since separated or divorced your spouse, either the federal government or the private student loan lender may pursue you for your ex’s debt. However, if you did not co-sign the student loan, you may have a valid defense to avoid responsibility for the debt.

Defaulting on Student Loans

Student loans have an important distinction over many other types of loans in that it is generally not dischargeable in bankruptcy. Although the loan itself is the standard contract to borrow and repay money, once the loan is designated as a loan for educational purposes, then it is very difficult to discharge the student loan debt in bankruptcy. However, as with all laws, there are a few limited exceptions. If you are facing difficulty paying a federal or private loan, or determining whether a bankruptcy exception may apply to your situation, we can help discuss your options to resolve the debt.

Get help with student loan debt relief.

Federal vs private student loan default.

Whether your student loan is federal or private can make some very big differences.

Federal Student Loan Default

If you default on your federal student loans, the government does not need to sue you to garnish your wages or take other collection actions against you. As it is a debt to the government, the government will try to collect on its debts in a variety of ways that is not available to private student loans or other collection lawsuit suits such as taking your tax refund (state or federal), offset your social security and more… The government typically sends you a warning letter to contact their office to make payments or they will take action against you and that’s it. They do not need a lawsuit, judge or jury. Although you do have a right to a hearing and there are defenses available, it is very difficult to defend a federal student loan and the hearing officer is not bound by the same standards as a standard court judge.

If you receive a warning letter, you have to act immediately. Have you updated your address with your federal student loan servicer? If not, you won’t get a warning until your paycheck is missing a substantial amount of money due to a garnishment or other collection action been taken by the government. If your federal student loan is in default, contact our office so that we can help you resolve the matter including the prevention of garnishments, bank levies and tax return seizures. We will also negotiate forbearances, deferments or a payment plan that suits your needs.

Private Student Loan Default

Debt from private student loans is the same as other unsecured debts in that the creditor has to sue you and get a judgment against you as in any typical collection lawsuit. Private student loan debts are still very difficult to discharge in bankruptcy, but they are unable to take the same actions that the federal government will take by federal student loans. In addition, private student loans are subject to all the standard collection defenses, including whether you were served properly, have the proper proof of debt and whether they correctly calculated your debt. You also have the standard protections to ensure that they haven’t been harassing you or have violated any collection laws in their attempts to collect the debt.