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Florida Bankruptcy Lawyer > Florida Student Loan Default Lawyer

Florida Student Loan Default Lawyer

Did You Default on Your Student Loan?

While the average college graduate in 2018 had student loan debt just shy of $30,000, according to NerdWallet, the unfortunate reality is that their debt will continue to grow in the years to come. Many college graduates and non-graduates end up owing more a decade after they graduate, even if they make regular payments. This eventually leads to loan defaults, which happens when a borrower is unable to make a scheduled payment on time. This can result in various types of consequences, depending on whether the loan was federal or private. The experienced Florida student loan default lawyers at Nowack & Olson, PLLC can help you through this daunting situation whether you already defaulted or are in jeopardy of defaulting soon.

Federal Student Loan Default

According to the U.S. Department of Education, the rate of federal student loan defaults is continuing to decline, which is a good thing, and often a result of borrowers finding the right legal assistance in the knick of time. After just the first day of missing a payment, a federal student loan becomes delinquent, and after 90 days of delinquency your credit score will most likely take a hard hit. However, the loan delinquency can be wiped out once all payments are made and the loan becomes current, so if you are only a month or two behind, there is hope yet to save your credit score. Defaulting on a loan occurs when the borrower is delinquent on their loan for an extended period of time (270 days), which can result in legal action by the lender. This includes:

  • Loan is taken over by a collection agency;
  • Losing eligibility for repayment plans, deferment, and forbearance;
  • Losing eligibility for federal student aid;
  • Student loan debt increases due to late fees, interest, collection, and more;
  • Wage withholding;
  • Bad credit score;
  • Losing your tax refund; and
  • More.

There are three traditional options for those who are in default. These include:

  • Loan consolidation;
  • Loan settlement; and
  • Loan rehabilitation.

However, for those who are delinquent on their student loans and want to avoid default (being delinquent for over 270 days), there are a few options:

  • Deferment or forbearance;
  • Consolidation; and
  • Creating a new repayment plan.

Private Student Loan Default

Having a private student loan go into default is just as daunting as a federal loan default, if not more. Being sued by a creditor is one of the most traumatic consequences of a private loan default, which does not typically happen with federal student loans. Other consequences include wage garnishment, tax refund withholding, damaged credit, and more. However, because of there are statutes of limitations for private loans, your private loan can eventually expire. We can assist you in various ways to combat private loan delinquency and default.

Our Florida Student Loan Debt Default Attorneys Are Here to Help

Being sued by a creditor or learning that your employer has orders from the federal government to withhold your wages is difficult to process. Whether you have defaulted on your loan or are delinquent, remember that there is still hope. Call the experienced student loan attorneys at Nowack & Olson, PLLC today at 866-907-2970 to  schedule a free consultation.

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