I’m Struggling on Paying My Private Student Loans! How Can a Lawyer Help?

If you thought there was an easy way out of your student loans, we have bad news for you. If you live in New York and are struggling with your student loans, there are some things you need to know.

I’m Behind on My Private Student Loans and Things Don’t Look Like They’re Getting Better!

Between the pandemic, unemployment, possible medical bills, skyrocketing inflation, and many other catastrophic things that have happen lately, it’s no wonder that people find themselves struggling. But ignoring your debt will eventually only make the problems worse. You’re going to have to deal with you student loan debt and the sooner the better.

Isn’t There a Moratorium on Paying Back Student Loans?

On April 6, President Biden signed an extension to the payment freeze on student loan paybacks until September 1, 2022. This moratorium started in May of 2020 as a response to the COVID crisis. However, this is a freeze on federal student loans. If you also have private student loans, this moratorium does not apply to you.

So What Can a Lawyer Do About My Private Student Loans?

One of the first things you should do when you’re ready to deal with your student loan debt is to review all your private loan agreements. Having a student loan attorney by your side for this will make it much easier and faster go through. Your lawyer should be able to quickly review all your loan documents and find the most effect path for your next steps. Here are some options your lawyer has:

• Defending a Lawsuit – Private student loan lenders are likely to sue you if you default (stop paying) your loan. Your student loan lawyer can guide can review your documents to see if your case can be dismissed for reasons such as:
  • If identity theft can be proven
  • If you were under 18 when you took out the loan
  • If the entity suing no longer owns the loan
  • If the school you went to turned out to be unaccredited or otherwise engaged in fraudulent promises
  • And several other motions that your lawyer can argue in your defense.

Your student loan lawyer can also negotiate a settlement with the lender, so you don’t have to end up in court.

• Bankruptcy – While student loans are not directly dischargeable through Chapter 7 bankruptcy, even the threat of bankruptcy (where lenders would get pennies on the dollar, if anything) is a strong negotiation tactic that your student loan attorney can use. And if you do need to declare bankruptcy,your attorney will work with you to see if you may quality for undue hardship discharges, which requires proving the following:
  • If forced to repay your student loans, you will not be able to afford your necessities and maintain a minimal standard of living.
  • The circumstance causing your hardship has or is likely to occur during a significant part of the life of your loan.
  • You have made good faith attempts to repay your loan.

• Deferment or Forbearance – Some loan agreements have stipulations about relief if you are having trouble making payments. If available, your student loan lawyer can request a temporarily delay in repaying your loan. There are, unsurprisingly, a lot of rules about this, but if you are struggling to meet even your most basic necessities, you may qualify for loan deferment or forbearance. Eventually this delay will end, and you’ll have to start paying again.

• Loan Modifications – Your student loan attorney can try to negotiate a lower monthly payment plan with the lenders who own your debt. This should make what you owe each month a little easier to handle.

• Loan Refinancing and Consolidation – What can make student loans such a nightmare to deal with is that you can be dealing with several of them, at all different rates, due at different times, with different limitations. Your student loan lawyer can help you refinance and consolidate your existing loans into one with lower rates and lower monthly payments. Note – You will be able to refinance your loan at a better rate only if you have an excellent credit score. The right student loan attorney should be able to help with that as well – Click here to learn more about fixing your credit.

• Statute of Limitations – If you haven’t made a payment of your private student loan in years, your debt may have passed its statute of limitations. This means whoever owns your debt at this point is no longer legally able to collect. Your student loan lawyer will need to review your case carefully to see what the timelines are in your documentation and your debt.
  
• Negotiations With Collection Agencies – if your originally lenders have sold your debt to collection agencies, your student loan attorney may be able to negotiate a lower final settlement with the agencies.

What to Do Next

If you are struggling with overwhelming student debt and don’t know where to turn, the time to act is now. Reach out to New York student loan attorney Ronald Weiss for a free consultation. He can guide you through the available options for your specific needs. Ron can get the process started and will be at your side the whole time. Call 631-271-3737 and take the first step to a fresh start.