Across America, college graduates are failing to pay off their student loans. And lenders, including government lenders, are turning to debt collectors to force repayment. If you took out a loan to go to college, you may have found it easy to pay when school was in session -- many loans allow deferred payment schedules as long as the student is still in school, full-time. But if the student changes to part-time status, the student may be deemed "non-matriculating" and suddenly be forced to pay the debt off in increasingly large amounts. This can hit student-debtors hard and hamper their ability to take on that low-pay or no-pay internship which they hope to launch their young careers.
It can be just as hard on their parents, or others, who may have co-signed for that student loan. Co-signers are just as responsible for paying the debt off and just as vulnerable to debt collectors. To make things more difficult, debt collection law firms will demand attorney's fees, which, depending on the state the debtor is in, can vary from 20% up to a third of the value of the loan.
The trick to dealing with this problem is to talk with an attorney BEFORE the debtor is sued over the debt. Once the debtor-student is sued, the debtor and co-signer may find it impossible to avoid paying massive attorney's fees even if they settle with the lender before going to court.
If you are facing default on a student loan or you co-signed for a student loan and you are concerned that you may soon be sued by the lender, call me, Greg DePaul, Esq., at (973) 376-8585. We need to talk now before the costs of dealing with the problem grow sky-high.
It can be just as hard on their parents, or others, who may have co-signed for that student loan. Co-signers are just as responsible for paying the debt off and just as vulnerable to debt collectors. To make things more difficult, debt collection law firms will demand attorney's fees, which, depending on the state the debtor is in, can vary from 20% up to a third of the value of the loan.
The trick to dealing with this problem is to talk with an attorney BEFORE the debtor is sued over the debt. Once the debtor-student is sued, the debtor and co-signer may find it impossible to avoid paying massive attorney's fees even if they settle with the lender before going to court.
If you are facing default on a student loan or you co-signed for a student loan and you are concerned that you may soon be sued by the lender, call me, Greg DePaul, Esq., at (973) 376-8585. We need to talk now before the costs of dealing with the problem grow sky-high.
RSS Feed
