Tempted to Default on That Student Loan? Don’t Do It?
The US and most of its citizens are in debt. But that is nothing new. Many may consider it just to be a way of life for Americans, while others are extremely unhappy when their debt load is so overwhelming that they cannot pay their essential bills such as the mortgage or rent, car payment, utilities – or they begin finding themselves struggling to buy groceries for themselves and their children. While mortgage debt continues to be the largest burden for many, and housing costs continue to rise, student loans have become the second-largest issue. They may help consumers and borrowers to get jobs eventually but making a student loan payment does not necessarily mean keeping a roof over your head or feeding your dependents.
As the student loan crisis ensues and continues to escalate, now heading toward $1.6 trillion for over 45 million borrowers and no end in sight, there are many opinions and theories from financial analysts, government officials, and politicians. On the borrower level, however, there is often much talk about just defaulting on student loans. You may have had people say to you that if you can’t make the payments, why not just default and stop worrying about it? The problem with defaulting on your student loan is not completely about credit. There can be serious repercussions, and the loan servicer likely will not give up.
Private loan servicers pursue their debt aggressively, much like a collection agency – in fact they will probably hire one to begin calling you as soon as your debt is due. The problem is that they have vast resources to sue you, with many negative repercussions following. If you have received a summons and complaint, most likely served to you by a sheriff or private process server, consult with a collections lawsuit attorney from Fitzgerald & Campbell, APLC as soon as possible so that they can begin helping you to write a reply.
While public student loan defaults come with a range of extremely negative consequences—from having an IRS tax refund intercepted to not being able to take on another student loan—the private student loan lawsuit is dangerous to you over the long run as the entities suing you may be able to get a default judgment easily—and especially if you do nothing to fight them or to negotiate even at a late hour. With a default judgment in hand, they have new power, and can make your life very uncomfortable if you have a job, garnishing your wages, taking your property and selling it at public auction, and freezing your bank account.
If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with an experienced law firm like Fitzgerald & Campbell, APLC as soon as possible. A solution can be found to help you through any of these issues, even if a judgment has already been granted.
Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at email@example.com.
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Posted in: Student Loan Debt