Student loans are often the only ways many who attend college are able to afford their education. Student loans come in two varieties, federally backed and private loans. The federally back loans tend to be properly regulated from inception throughout their eventual collection from the borrower, while private loans are not constantly regulated. Consequently, graduates are often pursued and treated inappropriately by their lenders.
At the GM Law Firm student loans that are collected by private lenders and owed by college students can be properly monitored. In many cases the firm can protect the student from abuses the private lender may pursue in the case of late payments or default.
Private Loans
Private Loans are issued by your local bank. It could be a large bank like Citigroup, Bank of America, Wells Fargo, Chase, PNC or Suntrust. It could be a much smaller community and savings and loan bank, as well as a credit union. Each of these institutions offers a similar range of products.
Deferment
Student loan deferment may seem like a good idea if you are having trouble getting a good paying job or keeping one. With a federally backed student loan, such as a Stafford loan, a deferment may not be and expensive decision if it’s a subsidized loan as the interest stops accruing and you’ll only be responsible for the principal and the interest that had accrued before the deferment.
Forbearance
Forbearance has fewer benefits, but it does allow the borrower to suspend payments to the lender. The interest may still accrue, but the borrower doesn’t have to make payments for a specified period of time. Not all private lenders allow forbearance as an option for the borrower. Students should check before choosing a lender if they want this option.
If You Default on Your Student Loan
After 270 days has past and you have failed to make payments on your student loan, you will be in default. Nine months later, you will have to make a decision, ignore the notices or seek legal assistance. If you find yourself in this kind of situation, your best move is to seek assistance from a firm that specializes in student loan cases. Doing nothing means your credit rating suffers, you will be responsible for the lender’s expenses they attempt to go through the court attempting to get the money.
Unfair Treatment by Private Student Loan Lenders
The GM Law Firm is poised to fight the big bullies like the National Collegiate Student Loan Trust (NCSLT), which buys up private student loans from banks. They then pursue the borrower aggressively. Most borrowers do nothing, which is to the NSCLT’s benefit. If you do nothing, you basically chose to default and then NCSLT, the plaintiff wins. When you default, you accept the charges and are then expected to pay the amount stated in the default. A borrower who was sued by NCSLT for missed payments sought representation from GM Law Firm and the law firm’s lawyer, Chantel Grant, was able to get the lawsuit dismissed.
Get the Debt Reduced
The GM Law Firm LLC has successfully won lawsuits that involved borrowers and a multitude of private lenders. In the last few years settlements have been negotiated by GM for its clients. One such settlement reduced the claim down to $22,944 with payments of $478 monthly for four years as opposed to the original amount of $98,185. This occurred because the borrower sought help instead of ignoring the notice and choosing to default on the loan.
Doing nothing is the worst thing you can do. If you do nothing the lender wins. If you seek legal help from experts like the GM Law Firm, it will guarantee you get the best possible outcome. You may need the help of forbearance or deferment, but their expertise can lead to an even better outcome, like your interest being erased. They’ll use their understanding of the laws governing contracts, student loans and debt to represent you and protect your interests.
