In the current environment, it is almost impossible for most students to get a college education without receiving some sort of financial aid. Often times, students take out student loans to help pay for the soaring cost of a college education. In fact, most students have probably taken out at least one student loan because the cost of a college education is increasing every year and colleges and universities do not appear to be willing to put the brakes on the cost of an education anytime soon.
There are two main sources of student loans: private loans and federal loans.
Federal student loans are guaranteed by the federal government and are not based on your credit worthiness. The federal government sets criteria and if you meet its criteria, you can normally get a federal student loan. A private student loan is issued by a private bank and are based on an applicant’s credit worthiness, meaning that if the bank thinks you are a good credit risk, you can get a private student loan.
Unfortunately, the fact that there are so many student loans out there means that many people are struggling to repay them. Student loan collectors can be brutal and unforgiving. Individuals who have trouble paying their student loans, may face:
- Tax refund seizures
- Wage garnishments
- Seizure of social security benefits
- Enormous collection fees and penalties
- Creditor harassment
- Limits on bankruptcy discharge
- Being declared ineligible for future student loans and grants
If you are having problems paying back your student loans, you may have options and we may be able to help you:
- Ease any financial hardship by obtaining a loan deferment
- Lower your payments to an affordable rate until your income increases
- Rehabilitate any loans that may have gone into default
- Stop income tax refund seizures, wage garnishments, and seizure of social security benefits
- Obtain a loan discharge based on factors that include school closure, fraud, and disability
- Minimize collection fees and penalties
- Challenge the enforcement of private student loans
- Obtain a bankruptcy discharge in an appropriate (but extremely limited and unusual) case
If you are having trouble paying back your student loans, do not give up hope. Even if you are several months behind on payments or even if your loans are in default, we may be able to assist you. Call us at (504) 324-2807 to schedule a free case evaluation. Quality and affordable legal representation may be close than you think.