Student loan debt in the U.S. reached an all-time high of $1.4 trillion
Before the first day of class, many students fill out all those forms and choose to forget about student loans after signing the dotted line. Thinking that debt is just something to deal with later. This is how student loan debt in the U.S. reached another all-time high of $1.4 trillion in the first quarter of 2019, according to Experian data. That’s an increase of 116% in just ten years and represents one of the country’s most significant and widespread financial burdens that often require legal assistance to resolve.
To combat a deep student loan debt, retaining a legal specialist can be the best route to help resolve an intimidating student loan situation and avoid a potential lawsuit. GM Law Firm, LLC proudly continues to focus on helping individuals mired in overwhelming private student loans resolve their debt.
Defining Private Student Loan Debt
Dealing with a difficult student loan situation can be tough as it’s both financially and emotionally draining, and oftentimes is further complicated if one has a cosigner who will be affected by delinquent student loan debt.
Private student loans are those issued by well-known banks, like Citigroup or Chase, or entities such as Sallie Mae and Navient. These loans can often have high-interest rates and penalties that – if the promise of a high-paying job after graduation doesn’t materialize – can follow individuals for the rest of their life. Within the private student loan industry, there is a tremendous amount of money exchanging hands which often lends itself to unscrupulous practices.
The Consumer Financial Protection Bureau, a government financial watchdog agency, recently reported that many student loan lenders, servicers and debt collectors are breaking the rules by threatening borrowers with lawsuits even though they have no intention of suing. Often some lenders use call scripts and letters that usually intended to mislead borrowers about the benefits of repaying their defaulted student loans which are generally illegal under the Fair Debt Collection Practices Act.
“If you are struggling with your private student loan, do not ignore it or make financial mistakes such as only making a minimum payment to stop the debt collectors,” GM Law Firm’s Chantel Grant advises. “This is a serious legal issue that often requires an attorney-negotiated, student loan debt resolution strategy.”
