STUDENT LOAN DEBT

The Credit & Banking Law Group, P.A. provides legal services under federal law including the Fair Debt Collection Practices Act ("FDCPA") and Fair Credit Reporting Act ("FCRA") to help people resolve their issues with federal student loans, regardless of the stage of their delinquency or repayment.

Almost three-quarters of students who default on their loans have done so after withdrawing from school and failing to complete their studies.

As a borrower you are responsible for repaying your student loans even if you do not graduate or have trouble finding a job after graduation.

If you do not make any payments on your federal student loans for 270 days, your loans will be in default. Defaulting on your student loans has severe and long lasting consequences.

We provide legal assistance under federal law which, depending upon your circumstances, may allow you to:

• Negotiate a waiver of late fees and other default charges as part of a consolidation or refinance.
• Establish a re-payment plan that will enable you to resolve your default situation as part of a consolidation or refinance.

What are the consequences of defaulting on your federal student loans?

• The Department of Education can immediately demand repayment of the total loan amount due.
• The Department of Education will attempt to collect the debt and may charge collection costs.
• The Department of Education reports defaulted loans to national credit bureaus, damaging borrower’s credit ratings and making it difficult for borrowers to make purchases such as cars or homes.
• Borrowers with loans in default are ineligible for Title IV student aid and further student loans.
• Borrowers with loans in default are ineligible for deferments.
• The Internal Revenue Service can withhold borrowers’ federal income tax refunds.
• Borrowers’ wages may be garnished.

What is Student Loan Restructure?

Similar to loan refinancing and consolidation, lenders are often willing to reduce a borrower’s monthly payment using a number of different methods including reducing their interest rate, lengthening the term of the loan, allowing for interest only payments for a predetermined period, and delaying payment of past due amount to the end of the term of the loan. In the case of a student loan, because it is a non-recourse loan, the lender may be more willing to negotiate because there is no collateral security to repossess.

Restructuring defaulted education loans allows borrowers to combine one or more of their federal education loans into a new loan that offers several advantages.

What are some of the advantages of restructuring defaulted federal education loans?

• Takes the loan out of default status
• One Lender and One Monthly Payment
• Flexible Repayment Options
• Varied Deferment Options
• Reduced Monthly Payments

 

Call to speak with one of our student loan advisors and learn what your legal options are regarding your defaulted federal education loans.

 Don’t wait – Contact us today!

 1-800-577-4909