Why Hire a Lawyer to Settle Private Student Loans?

Posted By Law Office of Simon Goldenberg, PLLC || 3-Apr-2017

If you're struggling with student loan debt, you're not alone! Just don't make the mistake of ignoring these debts, you could face serious consequences such as lawsuits and wage garnishment. Rather, you should work towards identifying your best resolution options and creating a plan to rectify the balances.

Our law firm has helped many distressed borrowers find affordable solutions to their student loans. Some of our biggest debt reductions were achieved when negotiating settlements on private student loans owed to major lenders such as Navient, National Collegiate, ReliaMax, and United Guaranty, and many others. Many of these settlements were structured over long-terms, with no additional interest, so that the payments would remain affordable.

There is no requirement for a lender to accept a reduced amount in full satisfaction of the debt. However, many lenders will consider offering a discount if it makes senses to them. One of the major factors is whether the borrower has legitimate financial hardship. Under the right circumstances, some accounts could be settled for substantially less then the outstanding balance.

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Student Loan Debt Is A Widespread Issue

The cost of attending college has grown exponentially over the past few decades. From 2000 to 2011, the cost of a degree rose 70%, from an average of $10,820 to $18,497. Today, there is more than $1.3 trillion in student loan debt in the United States alone, spread out over 44 million borrowers. To attend a 4-year college, the average borrower will accrue about $28,400 in debt, which doesn’t include any extra the students or their families pay on top of that. Only about 37% of students are actually able to pay down their student loans, while the rest make do with what they can afford. Many students have also moved back into their parents’ homes because they can’t afford to pay rent on top of paying off the loans. In addition, it’s no longer an option to avoid getting a college degree. On average, someone with a completed high school degree will make $27,915 a year, while a college grade will make $51,206.

Private Student Loan Default

If you’ve just graduated, and you’re facing years of debt repayment, or you’re behind on your payments, there are several options you could take to settle your private student loans. While the federal government will work with you to repay your loans by offering forbearance, repayment plans, or deferment, a private lender may not be as forgiving.

Private lenders will use a third-party debt collector to call you and send you letters pursuing payment. However, they don’t have other avenues of forcing involuntary repayment outside of court. In order to garnish wages or freeze bank accounts, most private lenders would first need to bring a student loan lawsuit and obtain a judgement.

When this happens, it’s important to consult our New York debt relief attorneys. Simon Goldenberg is extremely familiar with helping people get back on their feet. He can talk to you about several options for obtaining debt relief, such as discharge, dismissal, or even cancellation of the loan. We can help you identify all available resolutions that will best meet your goals and make your future a priority.

Contact us at (888) 301-0584 or fill out our online form to schedule a free initial case consultation today.

Results vary; prior results do not guarantee similar performance. Simon Goldenberg is licensed to practice law in New York and New Jersey. This page does not contain any legal advice.

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