As you may already know, a student loan is considered in default after 270 consecutive days of non-payment. (Yes, that is consecutive days – you could make a small payment every 269 days and avoid default, though this is not a recommended practice for a number of reasons). When a student loan goes into default, a range of powerful collection options become available to the student loan provider. These tools include the ability to garnish your wages and the ability to take your tax returns, most notably. Defaulting on a student loan is a big blow to your credit and could hurt your ability to obtain credit or get a home loan in the future. Obviously this is a big deal, and yet many Americans are defaulting on their student loans every day.
Why does this happen?
The answer is complicated, but what it boils down to is the difference between the high cost of education and the low availability of well-paying jobs, even for those with a college degree. Education costs are higher than ever and showing no signs of stabilizing, while wages have not even come close to keeping up. The result is an increasing number of graduates faced with mountains of debt and few job prospects to help them pay down that debt. This is a recipe for disaster in terms of the amounts of default that people are getting into in this day and age.
Don’t Live In Default
Default is a serious issue that can often lead to further financial trouble. With the student loan debt industry nearing $1 trillion and the rate of default increasing every day, we have dedicated ourselves to end this downward spiral. Our attorneys have the tools to help you end debt default. We can negotiate with the student loan companies to get you out of default and onto an income-based repayment plan, sometimes with payments as low as $1.00 a month. We also have the legal chops to stop any wage garnishment or tax return seizure that has been brought against you. With our help your default will become a thing of the past, a distant memory.
Facing student loan default is a prospect no one should have to deal with, yet all too many do deal with it on a daily basis. Contact one of our experienced team members today to get on the right track to putting a stop to default. Call us at 817.616.1629 for your no-obligation FREE consultation!