I need help with my student loans
I Need Help With My Student Loans
Americans are in the middle of a student loan crisis. The amount of outstanding debt climbed to $1.6 trillion in June 2019, and it’s likely to keep increasing. Unfortunately, many graduates cannot afford to pay the debt, with an estimated one of every 10 student loans currently in default. However, you have options to resolve your debt based on the type of loan you have.
You can take out both federal and private student loans. If you’ve defaulted on federal student loans, the government does not have to take you to court to get a judgment. Instead, it can garnish your wages to collect on the debt. The government can also seize your tax refunds until the debt is repaid. Federal student loans usually cannot be discharged in bankruptcy, but you do have options. You can get out of default with loan consolidation or rehabilitation. A Texas student loan assistance attorney can help you choose the right choice so you can get relief.
If you have private student loans, you have more options for resolving the debt. A private creditor must go to court and obtain a judgment before garnishing your bank account or taking other action. Ciment Law Firm has helped numerous clients avoid judgments when sued by private lenders.
Legal Defenses Against Private Student Loans
Private lenders tend to sell outstanding debts to third-party lenders. Debt collectors often create trusts that hold debts from multiple parties. Each time the debt passes through another set of hands, the chances of reporting errors increase. In some cases, the paperwork even disappears.
If paperwork is missing, inaccurate, or incomplete, Ciment Law Firm can get the lawsuit dismissed. It is up to the lender to prove the debt, and if it cannot, you should not have to pay.
You even have legal options if the creditor can validate the debt. Ciment Law Firm can work with the lender to negotiate a settlement on your behalf.
These are just two of the options available. Your lawyer will go over your options during your consultation.
Get Back on Track After Defaulting on a Federal Student Loan
If your loans are in default, you’re probably scared of what will happen next. You can get out of default without paying your balance in full with loan rehabilitation or consolidation.
Loan rehabilitation is a 10-month program that gets you back on track and removes the default from your credit report. You must make nine affordable payments that are based on your income level.
Loan consolidation can help you get out of default even faster. You’ll consolidate your loans and make an affordable payment each month. Even though this makes your loans current, the default stays on your record.
There is much to consider with both options, so consult with a Texas, student loan assistance lawyer before deciding.
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