Student Loan Law in Pennsylvania
Are you struggling with Student Loans? Are you looking to get out of Default or Delinquency? Can’t make the monthly payment? Are you facing an Administrative Wage Garnishment? Perhaps you are being sued by National Collegiate Student Loan Trust or another private loan lender? These are just some of the student loan issues that we deal with at Morrow & Artim, P.C.
First, you need to face the facts. Student loans are a confusing issue to almost everyone. There are federal loans, private loans, Perkins loans, Plus loans. Which is which? Which ones do I have? Frankly, there aren’t many people who do understand the complexities of student loans. If you’ve been searching for a student loan lawyer, you know that there aren’t many to choose from. That’s because of the difficult and confusing nature of the student loan business. Fortunately, we have the experience and knowledge to assist with almost any student loan law issue that you may face in Pennsylvania.
What Can a Student Loan Attorney Do?
Stop Harassing Phone Calls from Debt Collectors
Defend Lawsuits that are filed by Private Lenders
Lower your monthly payments
Help you get out of Default on your loans
Help you qualify for Student Loan Forgiveness
Get you out of Administrative Wage Garnishment
Types of Student Loans
Federal loans do not require a co-signor as they are not based upon credit worthiness. As stated above, federal loans are “good” loans to have. If you are unable to make repayment under the specified terms, there are several repayment options available including ICR, IBR, PAYE and REPAYE.
Student Loan Delinquency and Default
You are in “Delinquency” on a federal student loan if you have failed to make a single payment. You may hear from debt collectors for the lender/servicer if this occurs. You are in “Default” if you have failed to make a payment for 270 days. Default is very serious as it gives the debt collector much more power to do things like Administrative Wage Garnishment or Tax Refund Intercept.
How Can I Get Out of Delinquency or Default?
There are several options to get out of delinquency and default. For Delinquency only, you can request a deferment. (This may not be the best option, but it is an option). A deferment is simply a way for you to “skip” a few payments to get your finances in order. You can qualify for a deferment if you are unemployed for more than 6 months, if you receive federal or state public assistance, or if you are in the military. Please note that interest will continue to accrue on the loan while you are in deferment.
Consolidation is a way to take all (or a grouping) of your federal student loans and combine them into one Direct Loan. Its a fairly quick process, approximately 30-90 days, and it can prepare you to enter one of the federal Income Driven Repayment Programs which may allow you to substantially lower your payments. If you are in Default and you Consolidate, collection fees of up to 18.5% are added to the loan.
Rehabilitation is just what it sounds like, you “rehabilitate” the loan out of default. This can be done by making 9 on time payments over a 10 month period. These on time payments can be made at a lower payment rate if you qualify under the program. Rehabilitation also cures the negative mark on your credit report. If you happen to be in Administrative Wage Garnishment, the garnishment will stop after 5 monthly payments are made.