You didn’t plan for the economy to tank and jobs to disappear when you enrolled in college and took out all of those student loans. You thought you were making an investment in your future, but unfortunately, it has now resulted in a huge burden that follows you around every single day.
The student loan debt industry is littered with non-lawyers that will offer to settle your debts. However, some major lenders won’t negotiate with non-lawyers attempting to settle a debt for someone else. As your lawyer, McCarthy Law is able to deal with any creditor to help settle your private student loans. Our team of expert debt attorneys has helped countless clients avoid bankruptcy and settle their debts for a fraction of what they owe.
Non-lawyer debt settlement firms are completely unable to help you once a lawsuit has been filed, wasting your time and money, and leaving you to fend for yourself. Student loan debt has soared higher than ever before, and we are seeing more and more lawsuits being filed by the major lenders.
What Options Do You Have to Refinance Your Student Loans?
Traditionally, there are two options for refinancing student loans. They are:
- Student loan consolidation: This is a government program that will combine multiple federal student loans into a single loan. You receive a new interest rate that is usually an average of all of the loan rates. Your monthly payment may decrease as a result of inheriting a longer-term, but you’ll end up paying more in interest over time. This is not an option for private student loans.
- Student loan refinancing: With this option, a private lender pays off your student loans so that you owe a single new loan to the private lender. The new loan with the private lender will have new terms of repayment and a new interest rate. This option will only save you money if you have great credit and income.
Neither of these options will actually reduce the principal amount owed, unfortunately. In order to reduce the principal on student loans, you’ll need to work with one of our skilled attorneys to obtain a student loan settlement or discharge.
How Do You Know Whether You Have a Federal or Private Loan?
In order to know your student loan reduction options, you’ll need to know if your loans were borrowed through federal or private lenders.
Federal Student Loans
Visit the Federal Student Aid website at studentaid.gov and access the site with your FSA ID, which you used to apply for your Free Application for Federal Student Aid (FAFSA). This website has information on all federal student loans and will allow you to see your loan amount, outstanding balance, servicer, and other details. This is the easiest way to determine whether your student loan is federal or private. If you are unable to find your loan information on the studentaid.gov website, then you’ll know that your student loans must be private.
If your loans are federal, unfortunately, McCarthy will not be able to help. However, you may be able to qualify for student loan forgiveness—meaning you would no longer be required to repay some, or all, of your federal student loans. Click here to see if you qualify. If you think you may be eligible for federal student loan forgiveness, contact your loan servicer to submit an application.
Private Student Loans
Unable to find your loan information on the Federal Student Aid website? Your student loans must be from a private lender. Unfortunately, private student loans do not benefit from a centralized database like federal student loans, so you’ll have to do a little research to certify that you do have a private loan. If you check your student loan bill, you should be able to see the name of your lender somewhere on the page. If you still aren’t able to find the lender’s name, you can track them down through your credit report or the school’s financial aid office.
If you have determined that your student loans are private, McCarthy law can help. With our student loan settlement program, one of our licensed attorneys that specialize in student loan debt will contact your lenders. From there, they will begin the negotiation process to significantly reduce your interest rate and principal owed. The remainder of the debt will be forgiven by the lender, leaving you with a weight lifted off your shoulders and without the need to file for bankruptcy.
Have a Student Loan Lawyer Fight for You
Some people believe that hiring a debt attorney will cost them more than working with a non-lawyer debt settlement company, but that is not the case. Experienced debt settlement law firms like McCarthy Law generally cost less and offer actual legal protection should a lawsuit be filed. Our team of licensed student debt lawyers will end up saving you more money than they will cost you. Call (855) 976-5777 or complete an online contact form for a free debt consultation.