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 the Covid-19 pandemic shut down the U.S. economy in March 2020, the Biden administration has eliminated over $34 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, even if they were never enrolled in an IDR plan. Read more about how to apply for student loan forgiveness and the PSLF Program.
Get out of default
Federal student loan borrowers can use loan consolidation or 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 plans to help borrowers afford 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 about 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 the loan balance for defaulted student debt. An attorney can review the paperwork to see if the company has standing under Tennessee law to sue you and whether it’s violated any consumer laws. Sometimes, the lawyer may be able to work out a payment plan or have the entire balance wiped out.
Besides those things, some student loan attorneys can even help you get rid of your loans in bankruptcy by proving undue hardship. Read more about bankruptcy and student loans.
Learn More: How to Get Rid of Student Loan Debt