A student loan lawyer evaluates your federal and private loans and then provides legal advice to help resolve the issue you’re facing. They can help you:
Qualify for forgiveness. Since President Biden took office, the U.S. Department of Education has eliminated over $32 billion in student loan debt by improving existing student loan forgiveness programs. For example, it erased the debt of thousands of full-time government and nonprofit employees locked out of the Public Service Loan Forgiveness program because they had the wrong type of loan. The department also recently promised to give millions of borrowers credit towards income-driven repayment plan forgiveness, regardless of whether they were ever enrolled in an IDR plan or made any payments because their loans were in deferment or forbearance for years. Read more about how to apply for student loan forgiveness and the PSLF Program.
Get out of student loan default. Federal student loan borrowers can use consolidation or loan rehabilitation to return their loans to good standing. The right choice for you depends on your financial goals, whether you have an active wage garnishment or are trying to buy a home and need to clear CAIVRS to get a federally-backed mortgage. Read more about what happens if you default on student loans.
Negotiate a settlement. It’s possible to settle federal and private student loans once you fall behind on payments and default. A lawyer experienced in working with student loan servicers and debt collectors can help you negotiate a lump-sum settlement that saves you thousands of dollars and avoid paying taxes on settled debt. Read more about how a lawyer can negotiate student loan debt.
Lower monthly payments. The Education Department offers several student loan repayment options, like income-based repayment, that help gives borrowers affordable monthly payments. But the eligibility requirements for the plans can be confusing, especially if you’re married, retired, self-employed, or are worried about qualifying for loan forgiveness. Read more income-driven repayment plans and the IDR account adjustment.
Defending a student loan lawsuit. Private student loan lenders regularly sue the borrower and cosigner in state court to recover money owed for defaulted student loans.
Proving undue hardship in bankruptcy. Getting a student loan discharge in bankruptcy is challenging. To get a fresh start, you usually need to pass the Brunner Test. And that means you have to convince the bankruptcy court that you can’t maintain a minimal standard of living for yourself and your dependents while repaying the loans. Read more about bankruptcy and student loans.
Learn More: How to Get Rid of Student Loan Debt