When you enrolled in college, you probably thought you were making an investment in your future, and you were. What you hadn’t planned on was that the economy would tank, jobs would disappear and your student loans would become a huge burden following you around for the rest of your working life.
Unfortunately, that is the reality many find themselves in today. With the economic downturn and recessions of the 2000’s and 2010’s, many went to college or pursued higher education to help their chances of landing a good paying job. Consequently, student loan debt has soared, higher than ever before. In particular, many were forced to take out higher interest rate private student loans, not backed by the federal government.
Some less scrupulous schools lured people into education programs with promises of high paying jobs that never materialized. With tuition costs also soaring, private student loan debt has ballooned to crisis levels in this country. If you find yourself with less income than you anticipated and unable to keep up with student loan payments, there is help with an attorney negotiated student loan debt settlement.Creditor Lawsuits
How Student Loan Debt Settlement Works
Under our student loan debt settlement program, a licensed attorney contacts your student loan lenders and begins a negotiation process to significantly reduce the interest AND principal the lender claims is owed. At the end of a successful student loan settlement, the borrower ends up paying only a fraction of the original balance claimed by the lender. The rest of the debt is forgiven by the lender and the settlement is a full and final settlement of the debt, leaving the borrower without the burden of student loan debt going forward. All of this is done without filing bankruptcy.
What are Private Student Loans?
There are two main categories of student loans: federal and private. Federal student loans, such as Stafford Loans are backed by the federal government and are highly regulated. We do not work with federal student loans.
On the contrary, private student loans may be issued by well known banks, like Citigroup or Chase Bank. These loans may have higher interest rates than federally backed loans. Our student loan debt negotiation program is for privately issued student loans only. If you are unsure of what type of loans you have, you can contact us for a free evaluation.
Why you need a student loan lawyer to fight for you
Here is the main reason you need a student loan lawyer to fight for you and protect you against student loan lenders, such as Navient, Discover, National Collegiate Trust, etc. — there is A LOT of money exchanging hands in the student lending market. Whenever there is a lot of money exchanging hands in an industry, people tend to get greedy and break the rules. It is no secret that student lenders, servicers and collectors tend to break the rules.
The CFPB, the government’s financial watchdog agency, recently reported that the federal government’s own student loan debt collectors are breaking the rules. According to the CFPB, “Some of the debt collectors, who work under contracts from the Education Department and weren’t identified by the CFPB, threatened borrowers with lawsuits even though they had no intention of suing. Some used call scripts and letters that misled borrowers about the benefits of repaying their defaulted federal student loans. Misleading borrowers about their debts is generally illegal under the Fair Debt Collection Practices Act.”
Or there is the story of the “Corinthian 15” who are protesting student debt because there for-profit school, Corinthian College, illegally pushed predatory loans on their students after lying to them about career assistance and job prospects. The government shutdown Corinthian College due to this fraudulent lending and collection scheme, but previous students are still being collected against.
Basically, there is A LOT of rule breaking going on in the student lending industry, which is why you need a lawyer to fight for you and protect your rights. These lenders and collectors will definitely have lawyers on their side. It is in your best interest to have one as well.
Are there other alternatives?
Some private student loan lenders will offer forbearance or deferment of student loans, especially after graduation, in order for you to find a job. In some cases, if you are going through difficult times, you may be able to defer private student loans. But ultimately, the principal, interests and penalties will add up and you may find yourself with student loans you cannot afford.
If you have private student loans, or are unsure of what type of loans you have, please contact us for a free consultation with a student loan attorney. We will provide a free case evaluation to see if you qualify for our student loan debt settlement program.
We can represent you, not only in negotiating reductions in your debt, but defending you against creditor lawsuits. We have provided some answers to questions to help you once you have been served a complaint by a credit card or other collector. At 601 Attorney, we always offer a free consultation in person at one of our nationwide offices, to discuss your options, timelines and strategy to get true debt relief.
Should I answer the Complaint?Yes, if you believe you do not owe some or any of what the creditor says you owe.
Do I have to answer the Complaint?No, if you agree that you owe the amount claimed or you do not wish to dispute the claim.
What if I do not answer the Complaint?The plaintiff will win and get a judgment for everything asked for in the complaint. However, even if the plaintiff wins, there are limits on what can be collected. Our debt lawyers can guide you through this.
I have offered to make small payments on my bill, or I have told the plaintiff I would make full payments as soon as possible. Can the plaintiff sue me anyway?Yes. If you cannot make a payment, you or a debt settlement attorney can contact the creditor right away, explaining the situation. If they do not hear from you, they may assume you will not pay and typically will file a lawsuit. If they win, the court will add the costs of that suit to the amount you owe. The creditor does not have to accept anything less than what you owe, so it is best to talk directly or have a legal representative.
I cannot afford to pay the debt. Can they sue me anyway?Yes. That is not a defense.