Private Student Loans in Default
Today, private student loans are a $150 billion industry that in many cases preys on unsuspecting students in a variety of ways. This has resulted in approximately $8.1 billion of these loans being in default. In many cases students in default now look back and realize that like mortgage industry, they too were duped into these loans, and had little understanding of the consequences should they default on their loans. Many were unaware that there are no protections in place to help them avoid being scammed.
Consulting a Student Loan Lawyer
If you have private student loans in default, the first thing you should do is consult with a debt defense law firm so that you understand your rights, and the options that are available to help you.
Can I File for Bankruptcy?
This question is asked often. The answer is yes, you can file for bankruptcy but most likely the student loan debt will not be discharged. Fortunately there are a few ways that you can use the court system if your private student loans are in default. A student loan lawyer may be able to immediately stop harassing calls, emails and letters by sending cease and desist letters under Federal Law.
Private Student Loan Lawsuits
Many times a private student loan creditor will file a lawsuit to collect on the debt. If this occurs, you should hire a debt defense lawsuit to defend the lawsuit. you may have valid defenses and you may be able to work out a payment plan or reduction in the balance. If a judgment is granted, the private student loan lender now has the power to garnish bank accounts and seize certain property.
If you are faced with a student loan lawsuit, contact us now at Weston Legal.
We would be happy to answer any additional questions that you may have.
Contact us now for free with no obligation consultation.
Articles about Student Loans
- Consequences of Default on Student Loans
- Delinquent Student Loans
- Student Loan Garnishment
- Default on Private Student Loans
- Private Student Loans in Default