Student Debt: Understanding Time Limits for Filing a Borrower Defense Claim
No matter what your politics are, or your opinions on the economy or much of anything else, it is hard to find anyone in their right mind who will argue the fact that something needs to be done about student loan debt and defaults, and the amounts owed by over 45 million borrowers—many of whom are in financial distress.
With $1.6 trillion cumulatively owed to student loan servicers in the US, many of the country’s top financial analysts worry about how borrowers will deal with such massive amounts owed in the years to come, but equally concerning is how this type of deficit could affect the national economy with one issue leading to another as graduates (and non-graduates too) are restricted financially. This could leave them unable to afford homes, meaning that contractors and construction companies suffer, real estate agents and sales suffer, and everyone associated with such an industry suffers.
Millennials may not be purchasing cars because they’re paying off student loan debt, and so much more. The bottom line is that when spending is so restricted, the economy could go into a tailspin—and many independent, personal economies are doing so for sure already. Many student loan borrowers could and will simply go into delinquency and then default, with the potential to suffer many negative repercussions.
As everyone questions how such a crisis could come about and fingers are pointed from one entity to another, schools are under fire—especially for-profit institutions which may have directed extremely aggressive marketing campaigns toward new freshman, significantly overstating the potential for a career and an income. This can be a major issue for graduate students also who may exit school only to vie for jobs against those with lesser degrees.
As the US Department of Education has eliminated many protections put in place by the Obama administration for the Borrower Defense Rule, the crisis is obviously only going to get worse; however, now it is more important than ever to understand the timelines for filing a borrower defense claim.
If you, with the help of your student loan debt attorney, have discovered misrepresentation on the part of your school, according to the new 2019 Rule (applies to all borrowers taking loans after June 30, 2020), now you must file within three years from leaving the school. Even if an investigation is launched and they find out after the three-hour window that the school was at fault, you are not protected most likely. Previously, the 2016 Rule (applying to all borrowers taking loans between July 1, 2017 – June 30, 2020) stated that the student loan borrower had up to six years from the time that they discovered misrepresentation to file a claim. This is a substantial loss of time for everyone as the new rule unfolds, and obviously not in the favor of borrowers who may need more time to develop or report a case – or even figure out if they have one.
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Student Loan Debt