Student Loan Debt Settlement Lawyer

We Reduce Private Student Loan Debt

When you enrolled in college, you probably thought you were making an investment for your future — and you were. What you hadn’t planned on was that the economy would tank, jobs would disappear, and your student loans would become a huge burden following you around for the rest of your life. Unfortunately, that is the reality many find themselves in today. With the economic downturn and recessions of the 2000s and 2010s, many individuals went to college or pursued higher education to improve their chances of landing a good-paying job, enhancing their lives, or providing more for their families.

Consequently, student loan debt has soared higher than ever before. In particular, many were forced to take out high-interest-rate private student loans that were not backed by the federal government. Some less scrupulous schools lured people into education programs with promises of high-paying jobs that never materialized, and those borrowers were still liable for those hefty student loan repayments. With tuition costs also soaring, private student loan debt has ballooned to crisis levels in this country. If you find yourself with less income than you anticipated and unable to keep up with student loan payments, a student loan attorney can help negotiate your student loan debt down with a settlement.

How Student Loan Debt Settlement Works

Under our student loan debt settlement program, a licensed attorney contacts your student loan lenders and begins a negotiation process to significantly reduce the interest and original amount the lender claims is owed. At the end of a successful student loan settlement, the borrower ends up paying only a fraction of the original balance claimed by the lender. The rest of the debt is forgiven by the lender, and the settlement constitutes a full and final resolution of the debt, thereby relieving the borrower of the burden of student loan debt going forward. All of this is done without filing bankruptcy, which can take a long time to recover from.

What Are Private Student Loans?

There are two main categories of student loans: federal and private. Federal student loans, such as Stafford Loans, are backed by the federal government and are highly regulated. We do not work with federal student loans. 

On the contrary, private student loans may be issued by well-known banks, like Citigroup or Chase Bank. These loans typically have higher interest rates than federally backed loans. Our student loan debt negotiation program is specifically designed for privately issued student loans. If you are unsure of what type of loans you have, you can contact us for a free evaluation.

Why You Need a Student Loan Lawyer to Fight for You

Here is the main reason you need a student loan lawyer to fight for you and protect you against student loan lenders, such as Navient, Discover, National Collegiate Trust, etc. — there is A LOT of money exchanging hands in the student lending market. Whenever there is a lot of money exchanging hands in an industry, people tend to get greedy and break the rules. It is no secret that student loan lenders, servicers, and collectors tend to break the rules.

The Consumer Financial Protection Bureau (CFPB), the government’s financial watchdog agency, recently reported that the federal government’s own student loan debt collectors are breaking the rules. According to the CFPB, “Some of the debt collectors, who work under contracts from the Education Department and weren’t identified by the CFPB, threatened borrowers with lawsuits even though they had no intention of suing. Some used call scripts and letters that misled borrowers about the benefits of repaying their defaulted federal student loans. Misleading borrowers about their debts is generally illegal under the Fair Debt Collection Practices Act.”

Or there is the story of the “Corinthian 15” who are protesting student loan debt because the for-profit school they attended, Corinthian College, illegally pushed predatory loans on their students after lying to them about career assistance and job prospects. The government shut down Corinthian College due to this fraudulent lending and collection scheme, but previous students are still being discriminated against. 

Basically, there is A LOT of rule-breaking going on in the student lending industry, which is why you need a student loan attorney to fight for you and protect your rights. These lenders and collectors will certainly have lawyers on their side. It is in your best interest to have a law team as well.

When Should I Contact a Student Loan Lawyer?

When dealing with student loan debt, acting sooner is always better than later. Delaying action can lead to larger problems down the road. For example, interest on your outstanding loan balance can accumulate quickly, making an already difficult situation even harder to manage. Falling behind on payments can damage your credit score, impacting your ability to secure future loans or even get a job. And sometimes, debt relief companies might promise the world but fail to deliver, leaving you in worse shape than before. Therefore, it’s important to know when calling a student loan lawyer is the right move.

You’re Having Trouble Making Payments

If you’re struggling to make your monthly payments on federal loans or private loans, it might be time to consult a student debt lawyer. A lawyer can help you understand your repayment options, explore income-driven repayment plans, and see if loan consolidation is right for you. Not paying attention to these options could lead to default, further complicating your financial situation.

You’re a Victim of Fraud

Unfortunately, fraudulent activity involving student loans is more common than you might think. If you believe you’ve been misled by a lender or a debt relief company promising to erase your debt with a lump sum payment, it’s important to speak with a student loan attorney. Acts of fraud can range from identity theft to being scammed by a fake forgiveness program. A lawyer can help protect your rights and guide you through the process of reporting and rectifying the fraud.

You’re in a Dispute

Disputes can arise for various reasons — errors in your loan balance, issues with loan servicers, or disagreements over the terms of your loans. Handling these disputes on your own can be stressful and confusing. Student loan lawyers are experienced in negotiating with lenders and can advocate on your behalf to correct any mistakes and resolve conflicts.

You’re Considering Bankruptcy

Bankruptcy might seem like the only way out when you’re overwhelmed by debt. However, discharging student loans through bankruptcy is notoriously difficult. Consulting a student loan lawyer can provide clarity on whether this option is feasible for you. They can also explore alternative solutions that may be less damaging to your financial future.

You’re in Default

Defaulting on your student loans brings serious consequences, including wage garnishment and loss of eligibility for additional federal loans. If you find yourself in this situation, immediate action is necessary. A student loan attorney can assist in negotiating with your lenders, exploring loan rehabilitation programs, and finding ways to get back on track.

Helping You Clearly Grasp Your Rights as a Student Loan Borrower

Dealing with student loans isn’t easy, especially when your creditor starts pressuring you with aggressive demands for payment. But the law is on your side. You have clear rights that protect you from unfair treatment, harassment, and wrongful garnishment. For instance, did you know that your creditor must provide accurate records of your loan balance, repayment history, and interest rates? If these records are incorrect, you have the right to dispute them.

Federal law prevents debtors from being harassed by aggressive collection practices. This includes constant calls, threats, or misinformation about consequences such as immediate garnishment or tax refund seizures. We help you identify exactly when a creditor crosses the line and what steps you can take to push back against creditor harassment and creditor lawsuits. Your financial future should never feel like a guessing game, and we’ll make sure your rights remain clear as day.

Are There Other Alternatives?

Some private student loan lenders will offer forbearance or deferment of private student loans, especially after graduation, in order for you to find a job. In some cases, if you are going through difficult times, you may be able to defer private student loans. Ultimately, the principal, interests, and penalties will add up, and you may find yourself with student loans you cannot afford. If you have private student loans or are unsure of what type of loans you have, please contact us for a free consultation with a student loan paralegal. We will provide a free case evaluation to see if you qualify for our private student loan debt settlement program.

Why Avoiding Debt Consolidation Can Often Protect Your Financial Health

At McCarthy Law, we take pride in helping you learn more about your debt and the options you have. One of the things we often hear about is debt consolidation, as many believe it’s a great option for dealing with debt. Debt consolidation sounds like a straightforward fix — combine your debts into one loan with a single interest rate and monthly payment. However, for student loan borrowers, consolidation rarely does much and often leads to more financial trouble.

When consolidating federal student loans with private debts like credit card balances, you lose significant protections, including income-based repayment plans, forgiveness programs, and deferment options. Public loans typically have lower interest rates and more flexible repayment terms than those offered by private creditors. Consolidation can even extend your repayment timeline, meaning you’ll likely pay more interest over time. This might temporarily lower monthly payments but can significantly increase the total debt burden in the long run.

Instead, carefully assessing individual repayment strategies for each debt type protects your financial future better. McCarthy Law works directly with you to evaluate every option, keeping your rights and long-term stability front and center.

Frequently Asked Questions About Student Loan Debt

How can a private student loan attorney help me?

Student loan attorneys can provide you with legal advice, represent your interests during negotiations or lawsuits, resolve delinquencies, protect you from debt collector misconduct, and handle any credit disputes.

Can I discharge a federal student loan without having to file for bankruptcy?

In most situations, neither federal student loans nor private student loans are eligible to be discharged in bankruptcy. However, in some cases, you can have a federal student loan discharged if you experience serious problems with your school, work in public service, or have a severe disability.

What is the difference between federal student loans and private student loans?

While federal student loans are offered by the government, private student loans are offered by private-sector lenders. Interest rates for private loans are generally higher, cannot be forgiven, and are never subsidized. However, private student loans are not need-based, so you can qualify for a higher loan amount if you have good credit.

What are the costs of hiring a student loan lawyer?

Our services are offered on a flat-fee basis, which is calculated as a percentage of the debt amount. Typically, we can settle our clients’ debt for 55-65 cents on the dollar and without the need for bankruptcy. If our clients are sued, we represent them through trial for $975, plus the cost of filing the answer.

Should I expect student loan forgiveness for my private loan debt?

Student loan forgiveness programs are primarily designed for federal loans, offering relief to those who meet specific criteria. Unfortunately, these programs do not typically apply to private loan debt. While public loan forgiveness is an option for some student loan borrowers, relying on forgiveness alone is risky. The timelines and conditions for forgiveness can be unpredictable, putting you in a position where waiting might not be an option.

It’s smart to take proactive steps now rather than hoping for future federal programs that may or may not materialize. Consulting with student loan lawyers can help you explore other debt relief strategies, such as refinancing your loans or setting up manageable repayment plans. Taking control of your student loan issues today means you won’t be caught off guard by potential changes in the future. Don’t let uncertainty rule your financial life — seek out a student debt lawyer to discuss your options and create a solid plan moving forward.

McCarthy Law — Student Debt Lawyers That Put You First

Let our student debt attorneys help clarify your financial situation and set the foundation for success. Contact us and work with our attorneys on student debt, credit reporting errors, business debt, and more.

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