Take Control of Your Finances with a Student Loan Lawyer
College tuitions are exorbitantly high, and many students end up paying their student loan debts well decades past their graduation date. To add insult to injury, there is no guarantee that having that hard-earned and expensive college degree will land you a well-paying job that will enable you to pay off the loan. Unfortunately, failure to do so can result in wage garnishments, liens on your tax refunds, and other consequences that are beyond your financial reach.
Can Debt Collectors Garnish Student Loans?
Although most garnishments require a court order, federal student loans may be garnished without one. This means the collector can take the money that they are entitled to from your bank account or from your paychecks via a wage garnishment. Your authorization is not required for the withdrawal of funds -- the bank or your employer are required to comply with the law to turn over the funds.
If you find yourself scrounging to pay for student loans and drowning in debt, you could benefit from contacting our student loan bankruptcy lawyers in Fort Lauderdale at LSAS Attorneys.
How We Can Prove Undue Hardship for Student Loan Debt Discharge
We provide our clients with a comprehensive, personalized analysis of their federal and/or state student loan portfolio to determine eligibility for administrative discharge, loan cancellation or forgiveness, deferment, forbearance, rehabilitation, consolidation and/or repayment. If you have private student loans, we provide you with the same analysis, to determine all of your available options, including proactive or reactive settlement, eligibility for cancellation or bankruptcy discharge and availability of defenses.
We will educate you on all your options and provide full implementation of the best strategy moving forward, including assistance with the completion of forms and applications for forbearance, deferment, settlement, rehabilitation, consolidation and/or repayment. We also provide direct representation in communications with collection agencies, settlement negotiations, repayment plan negotiations, prevention or elimination of administrative wage garnishments, social security offsets, tax refund intercepts and other collection activity, including representation in lawsuits brought by student loan lenders.
Deferment or Forbearance
If you are unable to pay your student loans, especially in a situation of a short-term or temporary financial setback, a deferment or forbearance allows you to postpone your loan payments for a period of time. When a federal student loan is deferred, the government pays interest on subsidized loans. If the loan is in forbearance, the borrower (you) pay the interest on the loan.
Repayment Plans for Federal, State and Private Student Loans
If you have a federal student loan and are struggling to remain current on your payments, we can assist you with formulating a repayment plan that is manageable and beneficial to you. The types of income-driven repayment plans that we can help you with include:
- Income-Based Repayment (IBR)
- Income-Contingent Repayment (ICR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
IBR, ICR, PAYE and REPAYE are plans that allow you to make payments for a set number of years, and at the end of your payment term, you obtain loan forgiveness for the remaining balance. There is also a federal student loan forgiveness program that allows a qualified public servant to make payments for a shorter term and obtain loan forgiveness at the end of the term with no adverse tax consequences.
Repayment plans are also sometimes available for private student loans, depending on the lender. We can review the terms of your contract with your private student loan lender and fully explain all of your available options.
Defaulting on Student Loans
It is important to seek our help before your student loan goes into default. However, if this is not possible, there are still options available, primarily:
- Loan consolidation: In this situation, you may be able to keep from defaulting by consolidating your federal student loans, if you are eligible, by agreeing to immediately begin an extended repayment plan, which will allow you to cure the default.
- Debt rehabilitation: To do this, you generally must make 9 payments within a 10-month period, allowing you to cure your default. In some situations, such as an administrative wage garnishment, this is the only way to get out of a student loan default. Rehabilitation also allows the default notation to be removed from your credit report.
The above examples are only some of the many options at your disposal. Our attorneys will demystify the process for you and put you back in control. Contact us for a FREE consultation at LSAS Attorneys at (954) 932-5377 today.
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