The amount of student loan debt has surpassed the amount of credit card debt in the United States. Repayment options for those student loans are more confusing than ever. We represent borrowers in good standing who need a lower payment, as well as people facing delinquency, distress, economic hardship, default, and collections.
Some clients just completed college, and are looking for their cheapest options for repaying their loans long term. Other clients incurred debt for school many years ago but are still struggling to deal with their student loan debt.
Our charge for a student loan consultation is $150. In that appointment, we will discuss how to identify the types of student loans you have, the current status of those loans, your payback options, and potential defenses to lawsuits which may have been filed against you or are being threatened by debt collectors.
Are you being sued?
Federal student loans are typically recovered through either wage garnishment, tax refund offsets, or by debt collection agreements.
For private student loans, they are similar to other consumer credit contracts, like credit cards. That means the only way a private student loan lender can collect money, other than voluntary payments, is to obtain a judgment through a lawsuit.
If a student loan proceeds to a lawsuit, the creditor has the burden of proving the debt. That is not always easy for them to do.
Every case is different, but here are some potential defenses in student loan lawsuits: (1) the creditor cannot prove if they own the loan, (2) the statute of limitations has expired, (3) the creditor cannot prove the amount owed on the debt, or (4) there is a defect in the creditor’s paperwork (promissory note was forged or never signed, etc).
Frequently, utilizing these defenses can force a private student lender to consider a reasonable settlement which works in the consumer’s budget. Less frequently, the lawsuits are dismissed entirely.
If you are being sued on a student loan, we may be able to help. Please call 828-232-4949 and ask to be put on the calendar for a student loan consultation.