Get Out of Default

Student Loans

It is essential to get your loan out of default for a number of reasons. If it is federally-guaranteed your wages can be garnished or your tax refunds intercepted without going to court first. You also need to get out of default to be considered for federal repayment programs, or to make sure any payments you do make actually go toward paying off your loan. If you have not made a student loan payment for awhile, chances are your loan is either delinquent or in default. A federally-guaranteed loan is considered "delinquent" when you are behind in payments, and is not in "default" until you are 270 days late. For private loans, the terms of the loan agreement usually dictate that the loan goes into default as soon as a payment is late, though the lender may not consider it actually in default until a short time later.

There are two ways to get out of default for federally-guaranteed loans, which are called "Rehabilitation" and "Consolidation." Which will work best for your situation depends on what kind of loan you have, how it is currently being collected, and your income and other debts. Private loans require yet a different kind of analysis and negotiation with the lender. If you are already being sued by your private lender you may have defenses.

Unfortunately, you cannot usually get rid of student loan debt through bankruptcy, though there is an "undue hardship" exception. We can help you determine if that is a possibility for you. For more information see Bankruptcy FAQs.

We can assist you in getting and staying out of default. Call us for a free fifteen-minute consultation to tell us your story. At the end we will let you know how we can help you understand and deal with your student loan debt.

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