Taking Control of your Student Loan Debt
If you have student loans and you are struggling to make your payments, it is important to understand that you have several options available to you. However, not all options are created equal and it is essential that you confer with an attorney to determine which strategy you should use to gain control over your student loan debt.
Federal Student Loans
If your financial set-back is temporary or short term, such as loss of employment for a few weeks, a deferment or forbearance of your federal student loan will permit you to postpone your loan payments for a set period of time. In other words, you will be allowed to take a certain period of time off from being required to make your loan payments until your finances improve.
If your financial troubles are ongoing, you may be able to negotiate a repayment plan that is more affordable for you. There are even some plans that require you to make payments for a set number of years and if you do so successfully, the remainder of your loan is forgiven.
If you have a federal student loan in default, there are still options available to you. Typically, if you qualify, you can cure your default with loan consolidation or rehabilitation. If you have a tax refund offset and/or wage garnishment pending against you due to the default of your student loan, rehabilitation of your loan may halt them.
Private Student Loans
The terms of private student loans vary greatly, depending on your lender. Thus, we should conduct a thorough analysis of your loan to determine your available options. This may include negotiating a settlement, filing a personal bankruptcy, or defending a collection lawsuit.
It is our opinion that in most circumstances you should do everything possible NOT to modify your payments. The deferment or forbearance agreements offered by private lenders and even the numerous programs available to government backed loan debtors are, in the long term, not advantageous to a consumer’s overall financial health in that what you save today will cost you more later. Rather, we suggest you do whatever is necessary to pay these loans sooner rather than later, even to the point of defaulting on other unsecured debt or even bankruptcy to free up money to pay student loan debt.
Whether you owe the debt or not, you deserve to be treated with respect and fairness. Contact our California Debtor Protection Law Firm with your questions, comments, and concerns, or for a free consultation. Speak to a CA credit card lawsuit and collection harassment lawyer at our firm today.