Don’t wait until Student Loan Default

If you are behind on your federal student loans you are either delinquent or in default.  If you have a private student loan and are behind you are in default right away.  Whether you have a federal or private student loan you need the advice and counsel of a Montgomery, Bucks and Philadelphia County lawyer.  Consequences of defaulting on your student loans can include collection calls, negative credit reporting, 25% collection fees added to principal, tax refund intercept, Social Security offset, wage garnishment and/or a lawsuit being filed against you.

The importance of being only delinquent in your student loan rather than in default, is that you can enter into a favorable repayment plan much easier.  The payment plans of IBR and ICR (income based and income contingent) are available.  If you are in default, your loan(s) must be rehabilitated before receiving favorable IBR and ICR treatment.

Private student loans can be repaid or settled similar to the terms of a credit card or other unsecured loan.  Student loans cannot be discharged in bankruptcy unless the debtor falls into the hardship category under the Brunner test.  This is something you will want to discuss with a Montgomery County bankruptcy lawyer.  Chapter 7 or 13 is an option to stop phone calls, collection actions and lawsuits; a bankruptcy filing can provide a fresh start if employed properly to address your student loan burden.

We are a bankruptcy law office that advises and defends people with student loan debt.  We represent many people, both young and old in these situations.  Many people have struggled for years under the weight of student loans.  We can assist you in dealing with these matters and also determine if you qualify for public service loan forgiveness.

Parents, guarantors and co-signers of student loans may also need help.  We provide that help.  These issues affect your credit rating.

Whether you are in Philadelphia, Bucks or Montgomery County, the Delaware  Valley or Lehigh Valley we can help.  Call us for a consultation.  215-822-2728.