Many people owe money on student loans. Unfortunately, not everyone has the financial means to repay their debts on time.
That’s when financial issues start in life.
Perhaps you’ve fallen behind on your payments, and the lender has decided to sue you. If you’re tired of dealing with your student loan debt on your own, a student loan lawyer may be able to assist you in dealing with the problem.
We’ll go over what a student loan lawyer does in this post, and whether you need one.
What is the role of a student loan lawyer?
A student loan lawyer specializes in student loan law, including federal student loans, private student loans, and bankruptcy. They provide legal guidance on complicated student debt issues.
The lawyer will assist you in understanding the relevant laws and how they apply to your circumstance. They know how the student loan system works, what rights borrowers have and can offer helpful legal advice. A student loan lawyer can communicate with debt collectors or lenders on your behalf. You can get help in dealing with delinquencies or defaults. They will also advise you on whether or not to file for bankruptcy and how to do so. A lawyer can help with debt settlements. They send legal notices or write and file legal papers on your behalf.
When do you need a student loan lawyer?
Qualified student loan attorneys can assess your debt troubles and guide you. At the very least, you should hire a lawyer for a consultation. By doing so, you will know your rights, defending strategies, and the lawsuit procedure.
You are getting aggressive collection calls.
Most people are terrified of aggressive collection activities. Remember, there are some rules and guidelines that lenders and collection agencies need to follow. So, if you are getting the potential threat of being sued over the phone, you can hire a student loan lawyer for help.
You are facing a lawsuit for delinquent private student loans
If the lender successfully obtains a judgment against you, they can garnish your earnings, levy your bank, or seize your property. However, these options differ from one state to the next. If you are facing this situation, you can hire a student loan lawyer for assistance to hold wage garnishment or other such activities.
You need help with federal loan repayment programs
There are many repayment options for federal student loans if you can’t make your regular payments. If you are afraid of making a mistake while applying for these repayment programs independently, a lawyer can help.
You want to dispute the amount you owe on your account
Loan servicers manage millions of accounts; mistakes can happen. Remember, there are several reasons your balance may be larger than you expected.
Once you identify a mistake, a lawyer can help you by drafting a letter with proof to back up your claim.
You need help in settling your student loan.
If you plan to settle the loan, you should know that it is easier to settle a private loan than a federal loan. The private lender has to abide by the state statute of limitation (SOL) for debt collection. It is easier to settle your private student loan if you have defaulted on your payment for a long time. However, if you need help settling your loans, you can hire a lawyer. Your lawyer can help you negotiate with your lenders.
You want to know whether the collection agency can collect the debt
Student loans are sold to banks and other financial institutions. These loans are then bundled together and sold to many collection agencies. Sometimes paperwork is misplaced.
A judge can dismiss a debt if your loan servicer or collection agency cannot prove they own the student loan. An attorney can determine whether the agency is allowed to collect, use, or negatively report for your default.
You seek help in understanding SOL
Your primary task is to find the statute of limitations of your state then check whether the private student loan debt has exceeded the established limit. However, there is no statute of limitations on federal student loans. The statute of limitation for collection can vary from state to state. Remember that the creditors cannot sue the debtors to retrieve the owed amount if the statute of limitation expires.
You want to learn legal strategies
Suppose the educational institution from where you are pursuing studies lost its accreditation or shut down due to some specific reason. In that case, you are not entitled to pay the loan. You are required to provide evidence that the institution closed before you completed your studies to the U.S. Department of Education. Hiring a lawyer can help you understand many legal strategies to get rid of student loan debts.
How much to pay for a student loan attorney
Hiring a competent student loan lawyer isn’t free. A lawyer’s fee is determined by the length of your appointment and the pricing structure of the attorney you meet with. Paying hundreds of dollars per hour for the services of a reputable student loan lawyer can be difficult for you depending on your situation. So, it is recommended you hire a lawyer when you are facing legal difficulties in paying your loan. (For example, your lender or debt collector is attempting to garnish your income.)
If you need legal counsel but don’t have a lot of money, you can only consider a “consultation fee” for a detailed meeting. During this meeting, ask the lawyer specific questions about your situation and get legal advice.
Students are graduating with student loan debts, and many frequently default on their payments. Since the job market has not yet recovered, students are having difficulty finding a job, and some have suffered job loss.
You might be considering declaring bankruptcy to relieve some of your debt burdens. You may also wonder, “Do I need a student loan lawyer?” The answer is that it depends on specific circumstances. Instead of feeling overwhelmed and worried about your pile of student loan debt, you can explore legal ways to pay off your loan. And, for this, you can hire a student loan lawyer.
Author’s Bio: Lyle Solomon is a principal attorney for the Oak View Law Group in California, where he specializes in consumer bankruptcy. In addition to his extensive litigation experience, Solomon has written several articles on financial well-being.