With so many companies guarantying student loan debt forgiveness and using Obama’s words to market and sell their offerings, I thought I would set the record straight!

1. YOU CAN HELP YOURSELF FOR FREE
2. YOU CAN HIRE ONE OF THESE COMPANIES THAT MAY NOT BE LAWYERS; OR
3. YOU CAN HIRE A LAWYER TO REPRESENT YOU

Don’t be fooled into thinking these companies can get you any better deal that you can get yourself.  In fact, you could end up actually paying more for these non-lawyer companies than you would seeking the advice of a student loan lawyer in your area.  For a legitimate attorney referral, contact the National Association of Consumer Advocates (NACA). First, you MUST separate your federal loans from any private student loans you have taken.

FEDERAL LOANS Help

1. Gather your student loan information from National Student Loan Data System (NSLDS);
2. NEVER GIVE YOUR PIN NUMBER TO ANYONE BECAUSE YOU APPLY FOR LOANS USING THIS NUMBER
3. Review your options at Student Loan Borrower Assistance
4. If your loans are in DEFAULT, you MUST bring them current through REHABILITATION first;
5. Once your student loans are in good standing and current, then you can apply for a repayment program that you qualify for based on what you have learned from the Student Loan Borrower Assistance website
6. IF you have applied for a repayment program and YOU CANNOT AFFORD THE LOWER PAYMENTS, contact a bankruptcy attorney for a FREE consultation to determine if you qualify for an UNDUE HARDSHIP bankruptcy discharge.

Don’t ignore your federal student loans because once in default, these loans generate painful fees and costs to collect, including income tax interception; and garnishments without a lawsuit.

PRIVATE STUDENT LOAN Help

1. Pull a copy of your credit report: Private student loan will NOT be listed on the NSLDS website and may only show on your credit report. You may have legal rights under the Fair Credit Reporting Act for errors on your credit report;
2. Private loans have a statute of limitations on their legal right to sue you to collect on this debt (4 years from your last payment in California);
3. These loans may be easily discharged in bankruptcy for a variety of reasons:  (a) Disallow their claims to payment in Chapter 13; (b) Sue lender for loans that are not “Qualified Education Loans;”
4. If you’re being sued by a private student loan lender, consult with a reputable Student Loan Lawyer immediately to protect your rights;
5. You may be able to sue these lenders for violations of the Fair Debt Collections Practices Act if you are being harassed; inappropriately contacted; or you believe that amount you owe is not accurate.

The strategy or path you take is a personal one.  Whether you repay your student loans in full, or refuse to pay them and tackle them through lawsuits, or bankruptcy; it is important for you to know all the facts and your legal rights so that you can make a well informed decision.  You need to know what’s right for you, not what’s right for others.