Guide to Legal Help. Falling behind on student loan debt? Here's what you need to know What if I'm sued by a private lender? What if I'm sued by a private lender? Printer-friendly version Book traversal links for What if I'm sued by a private lender? Up What can I do to stop involuntary collections on my federal student loans? Defenses Standing The Plaintiff is the person or company that sues you. Statute of Limitations There is a time limit on private student loan collections. Other You may have other defenses, like: forgery the amount is wrong the debt has already been discharged You can learn more about these private student loan collection here.
In addition, income-driven plans help limit the amount of interest accrued and keep it from being added to the loan principal. These new measures are part of a June settlement with the American Federation of Teachers. Under the new agreement, Navient will train its customer service representatives to recognize words and phrases that indicate a borrower might be eligible for PSLF or another loan repayment plan.
There's no such thing as a "Navient student loan forgiveness" program, and it's unlikely that Navient borrowers will get the compensation the CFPB is requesting anytime soon. Navient borrowers with federal student loans may be eligible for one of the federal student loan forgiveness programs , such as Public Service Loan Forgiveness or forgiveness through an income-driven repayment plan.
However, forgiveness through these programs takes diligence and it isn't immediate. It takes at least 10 years of making on-time payments to qualify for PSLF, for instance. Your student loan servicer is the company you make payments to each month. Log on to your online loan account, if you have one, or check your last loan statement. The company powering the account or sending the statement is your loan servicer.
Not sure whether your loans are federal, private, or a mix of both? Navient services both federal and private loans. Check your credit report to see all of your education debts, including federal and private student loans. It is possible to switch student loan servicers through federal student loan consolidation or private student loan refinancing. Consider refinancing only if you can comfortably afford your expenses, student loan payments and other debts, and you have good credit.
Like with many student loan choices, it depends. Weigh the pros and cons before making a decision. Benefits of consolidating:. Combine multiple federal loans into one. Retain eligibility for income-driven repayment and forgiveness programs. May lower payments by extending repayment term. Downsides of consolidating:. Progress made toward loan forgiveness will be erased. May extend repayment period, increasing interest costs over time. Even if you can't change servicers, there are several things you can do to voice your concerns and protect yourself as a borrower: File complaints, check your credit report for errors, learn about your repayment options, and watch out for companies that charge fees for student loan help.
Call or email [email protected] You can then file complaints to one or more of the following entities:. Your state consumer protection office. Your congressional representative. This method should be used only as a last resort, says the federal student aid office. Class-action lawsuits are being filed against schools and student loan servicers themselves.
In one case, a group from the American Federation of Teachers claimed that Navient misguided them into student loan repayment and forbearance programs. This caused them to miss out on payments that would have counted towards the PSLF program. Department of Education. The goal was to propel education secretary Betsy DeVos and her administration into processing the stalled applications for the Borrower Defense to Repayment program. A lawyer can get you up to speed with lawsuits regarding the Department of Education that may affect you.
Why do I need to pay my student loans? You need to pay your student loans to avoid severe financial penalties and other consequences. For one, your credit report will be damaged due to your late payments, default status, and collections.
Additionally, your wages could be garnished, and your tax returns and Social Security benefits can be offset. Being proactive and working with your lender ahead of time can help you find alternatives to keeping you out of hot water.
Each student loan lawsuit is individual. Schedule a free minute call with me to discuss the options for your case. We can go over your situation before your court date. I'm a student loan lawyer that helps people like you with their federal and private student loans wherever they live. Stanley tate Student Loan Lawyer. There are still a few things you can do to help you through this situation: Get the background information.
Talk with a student loan lawyer. Answer the lawsuit and go to court. It will remain delinquent until you bring your account current and pay any late fees you accrued. If you continue missing payments long enough, your student loans will then go into default. Federal student loans will enter default after days pass without you making a payment. Private student loans can default after days, depending on the lender.
Once your loan enters default, the entire loan balance will become due. From this point, the lender may send your loan to a collection agency. If the situation drags on without payment, a lawsuit is one of the next steps private lenders may take. Lawsuits for federal student loans Federal student loans are unlikely to have a lawsuit filed since the federal government has numerous methods to get money from you without suing you. Speak with a student loan lawyer. Answer the lawsuit.
Head to court. Step 1: Get background information.
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