Many young students have no credit history and require a co-signer to take out student loans to finance their education. Oftentimes, these co-signers are the parents or grandparents of the student. By co-signing on the student loans, the parents or grandparents are agreeing to be legally responsible for the debt in the event that the student fails to pay. With many graduates struggling to find employment in today’s tough economy and ultra-competitive job market, many graduates are unable to make their monthly student loan payments and are in default.
As a result, many loan servicers are coming after the co-signers in attempts to collect on the outstanding debt. Once a student loan that was taken out through any federal student loan programs, including the Parent Plus loan program, is declared in default, the government may garnish the debtor and the co-signer’s wages, taxes and/or Social Security checks. This means a parent or grandparent co-signer could automatically start receiving lower paychecks or Social Security checks.
Student Loan Law Group realizes that the cost of college tuition nowadays is outlandishly high and that the majority of graduates are unable to afford to make their costly student loan payments despite putting forth their best efforts. The parents and grandparents who co-signed for the student loans only wanted to help their loved ones achieve their goals and live a better life through better job opportunities. Unfortunately, those better job opportunities are currently unavailable to the millions of people shouldering student loans. The parents and grandparents reasonably expected their loved ones to find employment upon graduation and simply cannot afford to have their paychecks, tax returns, and Social Security checks garnished.
Student Loan Law Group can help both students and co-signers whose student loans have been declared in default. Student Loan Law Group’s licensed attorneys request hearings immediately to prevent impending garnishment or to attempt to end a garnishment that has already occurred. It is critical for those in default not to delay in their attempts to resolve the default. Resolving the default is extremely difficult without the help of an expert. Student Loan Law Group realizes how much of an impact default and its resulting garnishment can have on peoples’ lives and urges anyone facing these issues to contact Student Loan Law Group’s offices today.
