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New York City Student Loan Lawyer

Student Loan Debt Relief

Are you in need of relief from student loan debt? You may have realized that you cannot make your loan payments because of other bills, such as utilities and rent. With the rising price of tuition, high interest rates and a down economy, many graduates like you are unable to make payments on time. In some cases, individuals with student loan debts believed they had already paid off or settle the debt, only to later find themselves facing legal action over the same debts (a situation referred to as "zombie debt"). If you cannot find a suitable job to cover the cost of your loans after the grace period has concluded, speak with our New York City debt relief lawyers. We may be able to negotiate reduced payments, lowered interest, or even eliminate some debt for you.

Defaulting on Student Loans

In the United States, defaulting on a student loan can result in many adverse consequences. Defaulting means that you have failed to repay a loan according to the agreement stated in the promissory note. Legal action can be taken by the lender to obtain the money owed to them. Defaulting on a loan can negatively affect your credit score and your ability to secure loans in the future. Whether you are facing difficulty paying a federal or private loan, we can discuss the relief options that are available to you and help you take action to resolve the debt.

Private Student Loan Default
Debt from private student loans is the same as other unsecured debts in that the creditor has legal cause to take action against you if you default. Private student loans work in much the same way as credit card debt. Similar to credit card debt, defaulting on student loan payments is considered a breach of contract. Your lender has the right to sue you if you have not made your private student loan payments as agreed. Unlike credit card debt, however, private student loan debt is almost impossible to discharge in a bankruptcy filing.

Federal Student Loan Default
If you default on your federal student loans, the government can use their resources against you to pursue collection of the balance owed. You can potentially face many negative consequences if you default, such as wage garnishment, tax refund seizures, and having your federal benefits taken away. You can even be sued by the government. If you have defaulted on a federal loan, it is very difficult to defend yourself or get yourself back in good standing and out of default. With our legal assistance, we can prescribe a solution to solve the debt issue.

What are my options for resolving student loan debt?

Defaulting on any type of student loan can have devastating consequences. At Lebedin Kofman LLP, we can help you avoid these repercussions if you have a valid hardship that prevents you from repaying the full amount of your loans. We can help you understand the options available to resolve this debt issue. Student loan rehabilitation can prevent wage garnishment, tax refund seizures and bank levies. With a successful negotiation outcome, you can even regain eligibility for deferment, forbearance, and additional federal financial aid. Student loan debts are typically not dischargeable through Chapter 7 bankruptcy, but we can help you make the payments affordable through other methods. Settlement and negotiation are debt restoration options that our firm can use to help you find relief.

Student loan debt defense is a relatively new area of practice, which makes the laws complex and confusing. Student loan default works in a similar manner to credit card default, which is a much more common type of financial difficulty. Some defense and settlement methods for credit card debt can apply to student loan debt. In fact, the same law firms that often represent credit card companies are contacted by student loan lenders when seeking to hold the debtor responsible for defaulting on payments. Student loan debt is a serious issue that should be given the attention it deserves. Most cases involving large sums of money are usually brought up in the Supreme Court as opposed to Civil Court because of the high sums of the debts.

At Lebedin Kofman LLP, we can develop a solution to resolve your student loan debt. Defense, vacation of judgment, and settlement aspects are nearly identical to credit card issues, and therefore, and we can use these methods to help you! We can negotiate with the student loan lender so that you can make affordable monthly payments to your lender. If you are able to put down a large initial sum of money, student loan creditors may be much more willing to settle. Our firm is unique in the way that we handle student loan debt. Contact our firm today to avoid the consequences of defaulting on your student loans!

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