What to Do If You’re Being Sued for a Student Loan in Maryland

If you’re sued for a student loan in Maryland, the outcome depends on how you respond. Ignore the lawsuit and the lender can win by default — letting them garnish your wages, freeze your bank accounts, or seize assets. To protect yourself, you’ll need to act quickly and understand the legal process, deadlines, and defenses available.

If you’re sued for a student loan in Maryland, you’ll be served with a Summons and Complaint. These papers explain who is suing you (such as Navient or National Collegiate Student Loan Trust), how much they claim you owe, the reason for the lawsuit (breach of contract, missed payments), and your deadline to respond.

The exact deadline depends on which court the case is filed in:

• District Court (most student loan lawsuits): You generally have 15 days from the date you’re served to file a Notice of Intention to Defend form (often included with the Summons). If you were served outside Maryland, you have 60 days. Filing this notice is required to contest the case and avoid a default judgment.

• Circuit Court (less common): You have 30 days from the date you’re served to file an Answer (a written response).

If you don’t respond by the deadline, the creditor can ask the court for a default judgment, which lets them garnish your wages or seize assets.

Filing an Answer is your chance to push back against the lawsuit. You can:

• Deny or challenge incorrect claims (such as the wrong loan amount, mistaken identity, or an expired statute of limitations)

• Raise legal defenses, like missing documentation or predatory lending

• Prevent a default judgment, which happens automatically if you don’t respond

To file an Answer:

• Use Maryland’s sample forms, available from the court clerk

• Send a copy to the plaintiff after filing with the court

• Consider getting advice from an attorney or legal aid service

Some defenses are waived if you don’t raise them in your Answer. If you’re not sure how to respond, talk to a student loan attorney right away.

If the case isn’t dismissed or settled, it moves to trial.

• Small claims (under $5,000): Trials are usually scheduled within 60 days.

• Larger cases: The timeline depends on court availability.

At trial, the creditor must show that:

• You owe the debt

• They own the loan and have the right to collect

• The loan amount is accurate

You can defend yourself by:

• Presenting payment records or other evidence that disputes the claim

• Demanding proof of ownership if the loan was sold to a third-party collector

• Challenging missing or incomplete documents, such as the original loan agreement

If the creditor wins, the court will enter a judgment against you. That allows them to:

• Garnish your wages

• Seize assets to collect the debt

In Maryland, judgments last 12 years, so creditors can pursue collection for more than a decade.

Appeals work differently depending on the type of case:

• Small claims: You can request a new trial in Circuit Court

• Larger cases: Appeals must be filed quickly, and the court reviews the case for legal errors only

Maryland law also sets strict timelines for student loan lawsuits:

You may be able to challenge a student loan lawsuit in Maryland with one of these defenses:

• Statute of limitations expired. Maryland’s statute of limitations is three years for written contracts. If the creditor waited too long to sue, the court can dismiss the case.

• Servicing errors. If the servicer misapplied payments, failed to provide records, or charged unlawful fees, you can dispute the debt amount. Maryland law also requires servicers to respond to borrower requests within 30 days.

• Debt collection violations. Under Maryland’s Consumer Debt Collection Act (MCDCA), collectors cannot use threats, harassment, or deception, sue without proper documentation, or contact your employer or family about the debt. If your rights were violated, you may be able to file a counterclaim.

Related:

• Maryland Student Loan Statute of Limitations

• How to Defend Student Loan Lawsuits in Maryland

If you’ve been sued, act quickly to protect yourself. Here are practical steps you can take:

• Gather evidence. Collect payment records, loan agreements, and any communication with your servicer.

• Talk to a student loan attorney. A Maryland student loan lawyer can identify defenses you may not know about, challenge incomplete documentation, and negotiate a settlement.

• Consider mediation. Maryland courts encourage mediation as an alternative to trial, and it may lead to a reduced debt or payment plan.

• File a complaint if your servicer mistreats you. You can contact the Maryland Student Loan Ombudsman or the U.S. Department of Education’s Ombudsman (877-557-2575).

• Find free or low-cost legal help. Options include the Maryland Volunteer Lawyers Service, Maryland Legal Aid, and the Maryland Attorney General’s Consumer Protection Division (marylandattorneygeneral.gov).

Related: Maryland Student Loan Forgiveness Programs