A large proportion of Americans are having difficulty repaying their student loans. While federal student loans include a variety of repayment options, this is not the case for most private student loans.
Borrowers between the ages of 25 and 49 owe an average of more than $35,000 on student loans. With the economy struggling and the ongoing COVID-19 pandemic, it’s safe to suppose that many student loan borrowers might use some assistance.
Where Do Things Stand Now?
Consider the following data on the current state of the student loan industry in the United States.
- The total amount of student debt in the
- United States is estimated to be over $1.6 trillion.
- Around $125 million of this is in arrears.
- Around 15% of student loans are in default at any given time.
- The average monthly payment on a student loan is around $400.
- Student loan default affects around nine million borrowers.
Relief from COVID-19
Federal Student Aid began giving temporary relief on Department of Education (ED)-owned federal student loans in March 2020, following the passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Relief arrived in the shape of:
- Payments on a loan have been suspended.
- There will be no collection activity on defaulted loans.
- Interest rate of 0%
The government has repeatedly extended these relief measures since then. The restrictions will be in place until at least September 30, 2021. Furthermore, relief has been granted to students who have defaulted on student loans obtained under the Federal Family Education Loan (FFEL) Program.
Do you require legal assistance?
If you default on your student loan, it’s natural to be concerned. If you’ve taken out a federal loan, you can get help in a variety of ways. However, if you have a private loan, things may become more problematic. Dealing with student loan debt does not always necessitate hiring an attorney. You can, for example, apply for a loan forgiveness program or seek discharge for a federal student loan on your own using the internet.
In some cases, consulting a student loan lawyer may be beneficial. If your student loan lender is taking you to court because you defaulted, this is an example.
When Might You Require the Services of an Attorney?
The circumstances of your situation will determine whether or not you require legal assistance with your student loan. Here are a few situations where hiring an attorney might be beneficial.
- If you are concerned about your student loan status and require expert assistance,
- If you require legal assistance because a lender has filed a lawsuit against you,
- If you are being harassed by a debt collection firm,
- If you have any questions concerning your legal rights regarding loan forgiveness or repayment programs, please contact us.
Dispute Resolution
You can seek settlement in a variety of ways if you and your student loan provider dispute on the status or balance of your loan.
- Make contact with your lender. In the event of clerical errors, simply speaking with your lender may be enough to clear the air. If it doesn’t work, you should look into getting your debt validated. The lender or collection agency is now responsible for validating the details of your debt in a timely manner.
- The FSA Ombudsman Group can be contacted. If you are unable to resolve your dispute with your lender, contacting the Federal Student Aid (FSA) Ombudsman Group may be a good option. Informally, the group assists in resolving conflicts over federal student funding.
Conclusion
If you’re getting harassed by collection calls, or if you’re overwhelmed by your student loan debt and don’t know what to do, speaking with an attorney who specializes in student loans may be in your best interests. Know that the majority of student loan issues are simple to handle if you know what measures to take.