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.