Why should I hire a Student Loan Attorney?

Student loan attorneys are knowledgeable about both federal and private loans. Federal student loans have many payment options. A student loan attorney can research your options and find the best payment plans to fit your needs. Most student are automatically put into a ten or twenty year repayment plan, but there may be other options and programs that are better suited to your particular needs. Certain programs and payment plans require annual updates in order to remain eligible. Hiring a student loan attorney who can keep track of your updates and file the paperwork for you each year can give you piece of mind.

If you are in delinquent status on your loans, much can be done to improve your situation. Borrowers in default status can rehabilitate their loans through special procedures. A good student loan attorney can assist you with the required paperwork and will be with you during the entire process.

Borrower’s defenses to the repayment of federal student loans may be available. Examples of borrower defenses include school closings, or being misled by your school as to its status, your eligibility, or job prospects. These defenses have been harder to get in recent years, but new litigation is forcing the Department of Education to take a closer look at these applications.

Private student loans are treated differently than federally guaranteed student loans. A student loan attorney should review your original paperwork, talk to your servicer, and look for any defenses you may have concerning the repayment of your loan. A student loan attorney will also try to negotiate the best settlement possible for you during these trying times.

When none of the above options works in your particular situation, you may want to consider a Chapter 13 Bankruptcy, in which you would modify your repayment plan. A bankruptcy court may, in some circumstances, award you a hardship discharge. This is a more challenging option and should only be considered after careful consultation with an attorney.

For the most recent updates in Student Loan Law, see my Twitter account @AshevilleLoan.