As the cost of tuition has continued to grow, students have had to borrow more from private and federally backed student loans lenders in order to complete a college degree. And when those education loans enter repayment after a student leaves school, graduates often find they are unable to pay the amount required by their lender, or to keep up with payments due to unemployment, underemployment, or simply not earning the salary they expected for their chosen profession.
Many borrowers long out of school and deep into their careers are also frustrated by the fact they can never seem to make progress in paying off their student loans. Interest accrued on the funds they borrowed many years ago can add a decade or more of extra payments before a borrower is able to satisfy the debt, and pay off total amount they owe.
If you have student loans debt, consumer protection laws require that lenders and student loan servicers treat you in a fair and equitable manner, and offer repayment terms based on your ability to pay off the amount owed in a reasonable period of time. However the reality is that many lenders and loan servicers use a variety of tactics to avoid these responsibilities, and to extend the life of a loan to the point that a borrower may continue paying more and much longer than expected, even into his or her senior years.
Considering these circumstances, it’s no surprise that student loan default rates are skyrocketing. If you can’t make your full loan payment, or if your loan account is not current according to your lender or loan servicer, you may already be experiencing some of the consequences of student loan default:
- Debt collection letters and phone calls
- Negative credit reporting, lowering your credit score
- Wage garnishment
- Bank account and asset seizure
- Social security garnishment
- Judgments and lawsuits
Borrowers overwhelmed by student loans debt are often surprised to learn they may cannot seek relief through bankruptcy, as in most circumstances this type of debt will not be discharged under current bankruptcy law. There are other options for dealing with student loan delinquency and default however, and we are here to help.
If you are unable to pay your student loans, or already in default, you don’t have to deal with the situation alone. Our legal team will help you resolve your student loan issues, and work directly with your lender or loan servicer to negotiate a forbearance, deferment, or a payment plan that you can afford, restoring your loan account to good standing.
The Helstowski and Helstowski Law Firm can help you manage student loan debt by offering a variety of services tailored to your specific needs. Each student loan situation is different, but with the right support you can resolve your outstanding debt and better understand how to maintain good standing with your lender for the life of your loan.