Student loans are a major problem that continues to worsen. Because of the willingness of lenders to underwrite excessive amounts of student loan debt and the willingness of the federal government to insure these loans, the cost of education continues to increase without limits because the flow of borrowed money to schools continues to increase. The increase in tuition then creates the need for increased borrowing by students. It is a terrible cycle that has now burdened the American people with over $1 trillion in student loan debt. Some borrowers took out loans for their education at an early age and will live their entire lives without paying off the student loan debt. Worse, the borrowers are forced to pay enormous loan payments every month that reduce their standard of living and prevent them from owning any assets or saving for retirement.
Student loans consist of private student loans and federal student loans. There are subtle but meaningful differences between the two. Federal student loans tend to have lower interest rates. However, they have no statute of limitation. Private student loans tend to have higher interest rates but they do have a statute of limitation, which may prevent collection or present a valid defense to a lawsuit by a student loan lender. Both federal and private student loans are unlikely to be discharged through a bankruptcy, except for certain circumstances that is primarily controlled by the federal bankruptcy code and the recent cases that interpret the code.
If you are having difficulty paying your student loans or are already in default with your student loans, or being sued by a student lender, an attorney at the Law Office of Stephen Ross will advise you on one or more strategies for dealing with the student loans. A no-cost consultation will review both your student loans and your overall financial situation and determine the best path forward. At the Law Office of Stephen Ross, we will work to get you back on track as soon as possible and advise you of your options.