Student loan debt has fewer options for resolution than other types of debt. If your student loan debt is affecting every area of your life, speaking with a student loan lawyer might help. For some former students, paying back student loans is a minor inconvenience. But these former students are in the minority. For a growing number of people, student loan debt is a pervasive burden that they can’t escape.
What Is a Student Loan Lawyer?
Like many other types of businesses and professional services, student loan lawyers began offering these specialized services in response to a growing need. Americans currently owe more than $1.5 trillion in student loan debt, and that number never stops growing!
It’s the highest amount of student loan debt owed in the history of the country; high enough to be considered a “debt crisis.” Over 44 million borrowers share the debt, a large percentage of whom never even finished their college degree. Student loan debt is second only to mortgage debt in this country, and it’s having a very real impact on the people carrying the debt.
The issue of student loan debt is a frequent topic of debate on the news. Some lawmakers are even talking about total loan forgiveness for everyone. Today, former students have a few options for managing their debt, including:
- Student Loan Consolidation
- Income-Based Student Loan Repayment
- Student Loan Forgiveness
- Student Loan Refinance
The problem with all of these options is that they are either unaffordable or unobtainable for the majority of borrowers. Only a handful of the applicants for student loan forgiveness qualify. Forbearance isn’t a long-term solution, especially with unsubsidized loans that continue to accrue interest. It’s difficult to know which options are available to you, and which ones provide real solutions for your situation.
A student loan lawyer understands the complex laws surrounding student loans. They can explain the rules and regulations that apply to private and federal student loan programs. Instead of allowing predatory lenders to take advantage of you and your debt agreement, they use the law and the legal system to work for you.
What’s the Difference Between a Student Loan Lawyer and a Student Loan Debt Relief Agency?
If you’re like most people, you’ve gotten more than your fair share of emails and letters in the mail advertising student loan help. The services offered range from debt consolidation to reduced payments, to total loan forgiveness. Some of them present themselves as government agencies. In return for a large fee, they promise to help you reduce your loan burden.
The problem with these companies is that they are just providing the same services you already have access to. They simply serve as the “middle man” and make a profit on something you can do yourself.
A student loan lawyer is different. They look at your situation and consider the areas where the law is on your side. They help you find gaps in your agreement that can turn the odds in your favor. The investment you made in your education is based on a contract between you and the lender. Contracts are usually legally binding, but there are times when they are invalid. For instance, if the terms of the agreement are illegal or go against public policy.
Other conditions that invalidate a contract include being under the age of consent, when the terms of the contract restrict the rights of the party, or if the terms are impossible. In the case of student debt, it isn’t just the company offering the loan that leads to overwhelming student debt. The schools that mislead students and persuade them to take out the loans play a role too.
Lots of graduates are promised high-paying jobs once they graduate to entice students to pay high tuition rates they can’t afford. When those jobs never happen, they end up with an expensive education that didn’t pay off.
A student loan lawyer looks at the agreements you signed and the terms you agreed to when you took out your loans. Maybe you don’t feel like you received the education you paid for. The lender or the school might have misled you about forgiveness options, or you just aren’t benefiting from your education. An “attorney-based student loan modification” is a new option that either reduces the loan balance or erases the student loan debt entirely. The details depend on the specific circumstances associated with student loan debt holder.
Student debt lawyers do charge a fee for their legal services. But you pay for a professional service that has an essential value to you. You could end up paying tens of thousands less by relying on their professional expertise. Also, the lawyer acts as your advocate, standing up for your legal rights. They negotiate with your loan provider and can file a lawsuit if necessary.
Should You Hire a Student Loan Attorney?
The answer is…maybe. Several factors determine whether you need legal assistance to change your current student loan situation. You can’t get rid of your student debt simply because you don’t like your lender or you would rather spend your money on a new car. On the other hand, if there’s a valid reason to fight back, why keep struggling with your debt if you don’t have to?
If you didn’t make a good investment in your education, you might turn your situation around by making a good investment in a lawyer who knows all about student loans now. Defaulting on your student loans isn’t inevitable. You do have options for getting out of student debt that are legal and won’t hurt your credit rating. If you aren’t sure you’re one of the people who will benefit from hiring a student loan attorney, start by learning exactly what they can do for you. You have nothing to lose by talking over your situation with a qualified lawyer. It could be the first step toward financial freedom.
– Giving You Legal Advice
It all comes down to what’s legal and what isn’t. A lawyer will explain your legal rights and explain your options. They will also advise you on the best approach to dealing with your debt.
– Representing Your Interests with the Lending Company
If you’ve made attempts to discuss your situation with the company that provided your loan, you know it’s like talking to a recording. The only thing they will tell you is that you are obligated to pay.
A student loan lawyer knows the law. They will represent your interests when negotiating with the loan company. They know how to get results instead of the same message that you’ve heard over and over again. They will also deal with any debt collectors or anyone else associated with your situation.
–Resolving Delinquencies or Defaults
As soon as you miss one payment, your student loan becomes delinquent. After 90 days, the delinquency gets reported to the major credit bureaus. Default occurs after a specified time period passes without you making any payments. Delinquencies and defaults hurt your credit score, making it difficult or impossible to buy a car or home when you are ready to.
Some students who can’t meet their monthly payments request deferred payments or seek a reduced payment plan. The difficulty in getting either of these options is the reason so many people are in default on their student loans.
A student loan lawyer can help you resolve delinquencies or defaults. They might apply for a loan discharge to completely remove your student loan debt. Having a lawyer handle your missed payments could mean the difference between severe penalties and having financial freedom for your future.
– Protecting You from Debt Collections and Debt Collection Agencies
Student loan debt differs from credit card debt. The latter is revolving debt with payments that go up and down. Student loan debt starts with a specified amount and you pay the same amount each month until you pay it off. One similarity is that when you miss a payment on either, you can expect debt collectors and agencies to start collections proceedings.
Nothing is more frustrating or embarrassing than having debt collectors call you at home or work in front of your friends and co-workers. A student loan attorney can protect you from harassing phone calls that impact you and everyone around you.
– Handling Credit Disputes
You might not realize that there’s a problem with your student loan payments until it shows up on your credit report. Sometimes the amount due changes without notice, allowing you to get behind on your payments if you don’t notice the change. Catching up and getting the dispute removed can be difficult and time-consuming.
To make matters worse, when you apply for student loans, you receive separate loans for each semester. Missing one payment can lead to multiple missed payments on your credit report. Your lawyer can handle any credit disputes that arise.
– Representing You in Court
When all parties can’t come to an agreement, the only way to resolve your dispute is in the courtroom. When that happens, you want a student loan lawyer who is familiar with the related laws and with your case to represent you.
The Unexpected Victims of Student Debt
Graduating from college should be an exciting time. You’re starting on your career path and planning for the future. For 1 in 5 Americans, that dream gets cut short due to the burden of student debt. They don’t have the income that they expected from their entry-level position. Damaged credit scores and high payments prevent them from pursuing the financially-independent lifestyle they dreamed of. There’s also the emotional stress that takes a toll.
But college graduates aren’t the only ones dealing with the student debt crisis. It’s the ones who don’t finish their degrees that are defaulting on their student loans. Experts cite the lack of knowledge about income-based programs, but the problem goes deeper. For those relying on government assistance and who have little or no income, these programs don’t help.
Perhaps the most surprising victims of the student loan crisis are not the students, but the adults aged 60 and older who are being impacted. Some have accumulated their own student debt while others took on the debt for their children or grandchildren. More seniors are returning to get the education they failed to get earlier in life. There are also fewer parents with the savings needed to pay for their children’s education outright. As a result, the number of people aged 60 and older who apply for student loans has more than doubled in the past decade.
Getting a Student Loan Lawyer: A Matter of Priority
When you made the decision to go to college, student loans were your only option. You were thankful that you qualified for the loans you needed to get an education. Like most college students, your priorities have changed. Now, you need shelter, transportation, and food. Things didn’t turn out as you expected, or the way the college told you they would.
Although you don’t have any extra money for attorney fees – or what you need to pay for essentials – finding a student loan lawyer to represent you should be a top priority. Failing to pay your student loans can result in wage garnishment, which is a lot more expensive. A student loan attorney will usually offer a free consultation to evaluate your situation.
If you compare the cost of hiring a lawyer to the costs you’re paying now, you’ll probably come out ahead by getting rid of all or some of your student loan debt.
How Can Iron Fist Legal Help
Mike Cantell, Founder and CEO of Iron Fist Legal is not a student lawyer. He has pioneered the first attorney-based student loan modification company. Fueled by the desire to help victims of predatory lending, he is on a mission to educate student debt holders and modify as many loans as possible.
If you think you are eligible for a modification, take action and contact us today.
If you are eligible we guarantee to reduce your student loan debt by 30% to 70% and in some cases have the debt completely canceled.