Being in default on student loans can pose serious problems for any borrower. It is crucial that a borrower who is struggling to make their monthly student loan payments ask for help immediately. Student Loan Law Group recognizes that it is easy for borrowers to become in default on their student loans. Many borrowers are currently experiencing monthly student loan payments that are just as high as their monthly mortgage or rent payments. In a poor economy where many graduates are either unemployed or underemployed, it is understandable why borrowers are struggling to repay their student loans.
Student Loan Law Group encourages borrowers to seek help before they are in default. Student loan accounts may be declared in default by the loan servicer when the account is two-hundred and seventy (270) days past due. Once borrowers are in default, it is extremely difficult to escape the default consequences. Default damages borrowers’ credit scores significantly. This can make it difficult, if not impossible, for borrowers to take out other loans if they want to purchase a new vehicle or home or if they decide to go back to school.
Many borrowers do not realize how serious the default consequences are until those consequences are actually imposed upon them. Borrowers who are in default face not only damaged credit scores, but also wage, tax and Social Security garnishment. Garnishment occurs when the government seizes the default borrower’s money to pay off any outstanding debt. Without a court hearing, the government may withhold the borrower or the borrower’s spouse’s tax returns and/or may take a portion of the default borrower’s paychecks or Social Security checks. Once garnishment occurs, borrowers are in serious need of legal representation to protect their rights. With the help of Student Loan Law Group, default borrowers who have had garnishment imposed may end the garnishment by successfully completing a rehabilitation plan to cure the default. Most rehabilitation plans take at least nine (9) months to successfully complete.
It is best to avoid student loan default at all costs possible however, Student Loan Law Group realizes that sometimes borrowers struggle to ask for help until they are actually facing default penalties. Student Loan Law Group may advise borrowers who in default of their rights. If retained, attorneys with Student Loan Law Group may request hearings on behalf of the default borrowers and may argue before a judge that the garnishment being imposed is unfair based on the default borrowers’ inability to pay. For more information on how to avoid default or get out of default, borrowers may contact Student Loan Law Group at 888-843-1706888-843-1706 FREE.