Fighting Student Loan Lawsuits

Posted By Law Office of Simon Goldenberg, PLLC || 12-Sep-2016

Have you been sued for a student loan?

It's normal to have serious questions when facing legal action. Most borrowers and co-signers will want to minimize the impact of the lawsuit and avoid having a judgment entered against them. You might be wondering:

  1. Why am I being sued?
  2. Do I really owe them the amount they claim?
  3. How do I fight the lawsuit? What are my defenses?
  4. Can I settle the lawsuit and avoid a judgment?

The lender may bring a lawsuit at any time after the loan has entered default, which typically happens after at least 6 consecutive monthly payments have been missed. In New York, the statute of limitations to bring a lawsuit for private student loans is generally 6-years from the date the contract was breached.

Sued For Student Loans? Get help today!

Call (888) 301-0584 or schedule a free evaluation.

Respond Properly and On Time

A lawsuit isn’t going to go away by itself. To avoid making the problem worse, you will want to respond to the lawsuit promptly. Failing to respond to a lawsuit in a timely matter can result in a default judgment being entered against you. This could allow the creditor to collect the full amount of their claim by freezing your bank account or garnishing your wages. The Answer to a private student loan lawsuit in New York must be drafted and filed in accordance with the New York Rules of Civil Procedure (NYCPLR).

Answering the lawsuit allows the court to see that you are appearing in the action and that you are contesting some or all of the allegations made in the Complaint. It causes the Plaintiff to further substantiate their claim, and also increases the borrower’s leverage to settle student loans for a reduced amount.

Defenses for Student Loan Lawsuits

Defenses will vary from case to case based on the unique circumstances of the matter and the specific allegations made in the Complaint. An experienced defense attorney would be in the best position to determine your applicable defenses.

In cases where the Plaintiff is a debt buyer or an assignee of the debt, there might be additional affirmative defenses available as compared to a lawsuit brought by an original lender. With a debt buyer case, it’s important to establish whether the Plaintiff actually has standing to bring a lawsuit against you.

Example Affirmative Defenses:

  • Lack of Standing
  • Statute of Limitations
  • Waiver & Equitable Estoppel
  • Incorrect Balance
  • Lack of Privity
  • Accord and Satisfaction

Student Loan Lawsuit Defense Attorneys

The best way to determine the legitimacy of the Plaintiff’s claim is to fight the lawsuit and demand evidence such as the promissory note, loan application, notices of assignment, and any pooling or trust agreements. Our lawyers defend borrowers from collection lawsuits brought by nearly all major private lenders, including Navient, National Collegiate Trust, United Guaranty, Arrowood Indemnity, and many others.

We are experienced litigators and understand the nuances inherent to defending actions for private student loans. Such cases sometimes have murky evidence, and with large claim amounts, having aggressive representation can make a big difference in how the matter is disposed. In many cases, we can stack the odds in our client’s favor to gain leverage for negotiating substantial settlement reductions.

If you've been sued for student loan debt, contact us at (888) 301-0584 for a free evaluation.

With the assistance of the committed student loan lawyers at the New York City Law Office of Simon Goldenberg PLLC, we can formulate a defense plan that will help you sleep well at night knowing that your rights are being rigorously pursued. It's time to get relief from student loan debt. Call us today.

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